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Given  By 





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tJ/i€/  u)eha/y£meni/  /cw  C/tate^ 

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Security    Council   Action   Requested — ^U.S.   Air    and 

Sea  Forces  Ordered  Into  Action   •   Statements  by  the 

President,     Secretary    Acheson,    Ambassador    Austin,    and 

Ambassador  Gross.      Texts  of  Security  Council  Resolutions  . 


Address  by  Secretary  Acheson 


By  EduMrd  A.  Jamison 



For  complete  contents  see  back  cover 

Vol.  XXIII,  No.  574 
July  3, 1950 



JUL    251950 


x^owy*.  bulletin 

Vol.  XXIII,  No.  574  •  Publication  3902 
July  3,  1950 

For  sale  by  the  Superintendent  of  Documents 

U.  S.  QovernmSCt  Printing  Office 

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be  reprinted.  Citation  of  the  Department 
Of  State  Bdlletin  as  the  source  will  be 

The  Department  of  State  BULLETIN, 
a  weekly  publication  compiled  and 
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the  Government  with  information  on 
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partment of  State  and  the  Foreign 
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Statement  by  Ernest  A.  Gross 

Deputy  U.S.  Representative  on  Security  Council  ^ 

At  4  o'clock  in  the  morning,  Sunday,  June  25th, 
Korean  time,  armed  forces  from  North  Korea  com- 
menced an  unprovoked  assault  against  the  terri- 
tory of  the  Eepublic  of  Korea.  This  assault  was 
launched  by  ground  forces  along  the  38th  Parallel, 
in  the  Ongjin,  Kaesong,  and  Chunshon  sectors, 
and  by  amphibious  landings  on  the  east  coast  in 
the  vicinity  of  Jnagmung.  In  addition,  North 
Korean  aircraft  have  attacked  and  strafed  the 
Kimpo  airport  in  the  outskirts  of  the  capital  city 
of  Seoul. 

Under  the  circumstances  I  have  described,  this 
wholly  illegal  and  unprovoked  attack  by  the  North 
Korean  forces,  in  the  view  of  my  Government,  con- 
stitutes a  breach  of  the  peace  and  an  act  of  aggres- 

This  is  clearly  a  threat  to  international  peace  and 
security.  As  such,  it  is  of  grave  concern  to  my 
Govermnenh  It  is  a  threat  which  must  inevitably 
be  of  grave  concern  to  the  governments  of  all 
peace-  and  freedom-loving  nations. 

A  full-scale  attack  is  now  going  forward  in 
Korea.  It  is  an  invasion  upon  a  state  which  the 
United  Nations  itself,  by  action  of  its  General  As- 
sembly, has  brought  into  being.  It  is  armed 
aggi'ession  against  a  government  elected  under 
United  Nations  supervision. 

Such  an  altack  strikes  at  the  fundamental  pur- 
poses of  the  United  Nations  Charter.  Such  an 
attack  openly  defies  the  interest  and  authority  of 
the  United  Nations.  Such  an  attack,  therefore, 
concerns  the  vital  interest  which  all  the  members 

'  Made  before  the  Security  Council  on  June  25  and  re- 
leased to  the  press  by  the  U.S.  Mission  to  the  U.N.  on  the 
same  date. 

of  the  United  Nations  have  in  the  organization. 

The  history  of  the  Korean  problem  in  the  United 
Nations  is  well  known  to  you.  At  this  critical 
hour  I  will  not  review  it  in  detail.  But  let  me 
recall  only  a  few  milestones  in  the  development  of 
the  Korean  situation. 

A  joint  Commission  of  the  United  States  and 
the  Soviet  Union  for  2  years  sought  unsuccessfully 
to  agree  on  ways  and  means  of  bringing  to  Korea 
the  independence  which  we  assumed  would  auto- 
matically come  when  Japan  was  defeated.  This 
2-year  deadlock  prevented  38  million  people  in 
Korea  from  getting  the  independence  which  it  was 
agreed  was  their  right. 

My  Government,  thereupon,  sought  to  hold  a 
four-power  conference  at  which  China  and  the 
United  Kingdom  would  join  the  United  States  and 
the  Soviet  Union  to  seek  agreement  on  the  inde- 
pendence of  Korea.  The  Soviet  Union  rejected 
that  proposal. 

The  United  States  then  asked  the  General  As- 
sembly to  consider  the  problem.  The  Soviet  Union 
opposed  that  suggestion.  The  General  Assembly 
by  resolution  of  November  14,  1947,  created  the 
United  Nations  Temporary  Commission  on  Korea. 
By  that  resolution  the  General  Assembly  recom- 
mended the  holding  of  elections  not  later  than  the 
31st  of  March  1948,  to  choose  representatives  with 
whom  the  Commission  might  consult  regarding  the 
prompt  attainment  of  freedom  and  independence 
of  the  Korean  people.  These  elected  representa- 
tives would  constitute  a  national  assembly  and 
establish  a  national  government  of  Korea. 

The  General  Assembly  further  recommended 
that  upon  the  establishment  of  a  national  govern- 
ment, that  government  should  in  consultation  with 
the  Commission  constitute  its  own  national  secu- 
rity forces  and  to  dissolve  all  military  or  semi- 
military  formations  not  included  therein.  The 
General  Assembly  recommended  that  the  national 

July  3,  1950 

government  should  take  over  the  functions  of 
government  from  the  military  command  and  from 
the  civilian  authorities  of  North  and  South  Korea, 
and  arrange  with  the  occupying  powers  for  the 
complete  withdrawal  from  Korea  of  the  armed 
forces  as  early  as  practicable  and  if  possible  within 
90  days. 

Elections  were  held  in  South  Korea,  and  the 
Coromission  did  observe  them.  A  Government  in 
South  Korea  was  set  up  as  a  result  of  the  elections 
observed  by  the  Commission.  The  Commission 
was  unable  to  enter  North  Korea  because  of  the 
attitude  of  the  Soviet  Union. 

The  Temporary  Commission  in  its  report  to  the 
third  session  of  the  General  Assembly  stated  that 
not  all  the  objectives  set  forth  for  it  had  been  fully 
accomplished  and  that,  in  particular,  unification 
of  Korea  had  not  yet  been  achieved. 

Notwithstanding  the  frustrations  and  difficulties 
which  the  Temporary  Commission  had  experienced 
in  Korea,  the  General  Assembly  at  its  third  session 
continued  the  Commission's  existence  and  re- 
quested it  to  go  on  with  its  efforts  to  bring  North 
and  South  Korea  together. 

One  aspect  of  the  resolution  adopted  by  the  third 
session  of  the  General  Assembly  should,  I  feel,  be 
particularly  emphasized.  The  General  Assembly 
declared  that  a  lawful  government  had  been  estab- 
lished in  Korea  as  a  result  of  the  elections  observed 
by  the  Commission  and  declared  further  that  this 
was  the  only  lawful  government  in  Korea.  Tliis 
is  a  most  significant  fact. 

The  General  Assembly  declared  further  than  the 
Government  of  Korea  was  based  on  elections  which 
were  a  valid  expression  of  the  free  will  of  the  elec- 
torate of  that  part  of  Korea  and  which  were  ob- 
served by  the  United  Nations  Commission. 

In  the  light  of  this  declaration,  my  Government 
on  January  1,  1949,  extended  recognition  to  the 
Government  of  the  Republic  of  Korea,  and  more 
than  30  states  have  since  that  time  also  accorded 
recognition  to  that  Government. 

The  United  Nations  Commission  worked  toward 
the  United  Nations  objective  of  the  withdrawal  of 
occupation  forces  from  Korea,  the  removal  of  the 
barriers  between  the  regions  of  the  North  and 
South,  and  the  unification  of  that  country  under  a 
representative  government  freely  determined  by 
its  people. 

In  1949,  as  in  1948,  the  Commission's  efforts  to 
obtain  access  to  North  Korea  which  included  both 
direct  intercourse  with  the  northern  authorities 

and  endeavors  to  negotiate  through  the  Govern- 
ment of  the  U.S.S.R.  were  fruitless.  The  Com- 
mission was  unable  to  make  progress  either  toward 
the  unification  of  Korea  or  toward  the  reduction 
of  barriers  between  the  Republic  of  Korea  and  the 
northern  authorities.  The  Commission  reported 
to  the  General  Assembly  that  the  border  of  the 
38th  Parallel  was  becoming  a  sea  of  increasingly 
frequent  exchanges  of  fire  and  armed  raids,  and 
that  this  constituted  a  serious  barrier  to  friendly 
intercourse  among  the  people  of  Korea. 

The  Commission  observed  the  withdrawal  of 
United  States  forces,  which  was  completed  on  June 
19,  1949.  Although  it  signified  its  readiness  to 
verify  the  fact  of  the  withdrawal  of  Soviet  occu- 
pation forces  from  North  Korea,  the  Commission 
received  no  response  to  its  message  to  the  U.S.S.R. 
and  therefore  could  take  no  action. 

At  the  fourth  session,  the  General  Assembly 
again  directed  the  Commission  to  seek  to  facilitate 
the  removal  of  barriers  to  economic,  social,  and 
other  friendly  intercourse  caused  by  the  division 
of  Korea.  The  General  Assembly  also  authorized 
the  Commission  on  October  21,  1949,  in  its  discre- 
tion, to  api^oint  observers  and  utilize  the  services 
and  good  offices  of  persons  whether  or  not  repre- 
sentatives of  the  Commission.  The  United  Nations 
Commission  on  Korea  is  presently  in  Seoul  and 
we  have  now  received  its  latest  report. 

Mr.  President,  I  have  tabled  a  draft  resolution  ^ 
which  notes  the  Security  Council's  grave  concern 
at  the  invasion  of  the  Republic  of  Korea  by  the 
armed  forces  of  North  Korea.  This  draft  resolu- 
tion calls  upon  the  authorities  in  the  North  to 
cease  hostilities  and  to  withdraw  armed  forces  to 
the  border  along  the  38th  Parallel. 

The  draft  resolution  requests  that  the  United 
Nations  Commission  on  Korea  observe  the  with- 
drawal of  the  North  Korean  forces  to  the  38th 
Parallel  and  keep  the  Security  Council  informed 
on  the  implementation  and  execution  of  the  resolu- 
tion. The  draft  resolution  also  calls  upon  all 
members  of  the  United  Nations  to  render  every 
assistance  to  the  United  Nations  in  the  carrying 
out  of  this  resolution  and  to  refrain  from  giving 
assistance  to  the  North  Korean  authorities. 

The  Security  Council 

RECAr.MNo  the  finding  of  the  General  Assembly  in  its 
resolution  of  21  October  1949  that  the  Government  of  the 

'  Adoirted  by  the  Security  Council  on  June  25,  1950,  by  a 
vote  of  9  to  0,  with  1  abstention  (Yugoslavia)  ;  U.S.S.R. 
was  absent. 

Department  of  State  Bulletin 

Republic  of  Korea  is  a  lawfully  established  government 
"having  effective  control  and  jurisdiction  over  that  part 
of  Korea  where  the  United  Nations  Temporary  Commis- 
sion on  Korea  was  able  to  observe  and  consult  and  in  which 
the  great  majority  of  the  people  of  Korea  reside  ;  and  Uiat 
this  Government  is  based  on  elections  which  were  a  valid 
expression  of  the  free  will  of  the  electorate  of  that  part  of 
Korea  and  which  were  observed  by  the  Temporary  Com- 
mission; and  that  this  is  the  only  such  Government  in 
Korea" ; 

MiNDBTJL  of  the  concern  expressed  by  the  General  As- 
sembly in  its  resolutions  of  12  December  1948  and  21  Octo- 
ber 1949  of  the  consequences  which  might  follow  unless 
Member  states  refrained  from  acts  derogatory  to  the  re- 
sults sought  to  be  achieved  by  the  United  Nations  in  bring- 
ing about  the  complete  independence  and  unity  of  Korea  ; 
and  the  concern  expressed  that  the  situation  described  by 
the  United  Nations  Commission  on  Korea  in  its  report 
menaces  the  safety  and  well-being  of  the  Republic  of  Korea 
and  of  the  people  of  Korea  and  might  lead  to  open  military 
conflict  tliere; 

Noting  with  grave  concern  the  armed  attack  upon  the 
Republic  of  Korea  by  forces  from  North  Korea, 

Determines  tiiat  this  action  constitutes  a  breach  of  the 

I.  Calls  upon  the  authoriites  of  North  Korea  (a)  to 
cease  hostilities  forthwith;  and  (b)  to  withdraw  their 
armed  forces  to  the  thirty-eighth  parallel. 

II.  Requests  the  United  Nations  Commission  on  Korea 
(a)  to  observe  the  withdrawal  of  the  North  Korean  forces 
to  the  thirty-eighth  parallel ;  and  (b)  to  keep  the  Security 
Council  informed  on  the  execution  of  this  resolution. 

III.  Calls  upon  all  Members  to  render  every  assistance 
to  the  United  Nations  in  the  execution  of  this  resolution 
and  to  refrain  from  giving  assistance  to  the  North  Korean 


Statement  hy  President  Trwnan 

[Released  to  the  press  June  27] 

In  Korea,  the  Government  forces,  which  were 
armed  to  prevent  border  raids  and  to  preserve  in- 
ternal security,  were  attacked  by  invading  forces 
from  North  Korea.  The  Security  Council  of  the 
United  Nations  called  upon  the  invading  troops  to 
cease  hostilities  and  to  withdraw  to  the  38th  Par- 
allel. This  they  have  not  done  but,  on  the  con- 
trary, have  pressed  the  attack.  The  Security 
Council  called  upon  all  members  of  the  United 
Nations  to  render  every  assistance  to  the  United 
Nations  in  the  execution  of  this  resolution.  In 
these  circumstances,  I  have  ordered  United  States 
air  and  sea  forces  to  give  the  Korean  Government 
troops  cover  and  support. 

The  attack  upon  Korea  makes  it  plain  beyond 
all  doubt  that  communism  has  passed  beyond  the 
use  of  subversion  to  conquer  independent  nations 
and  will  now  use  armed  invasion  and  war.  It  has 
defied  the  orders  of  the  Security  Council  of  the 
United  Nations  issued  to  preserve  international 
peace  and  security.  In  these  circumstances,  the 
occupation  of  Formosa  by  Communist  forces 
would  be  a  direct  threat  to  the  security  of  the 
Pacific  area  and  to  United  States  forces  perform- 
ing their  lawful  and  necessary  functions  in  that 

Accordingly,  I  have  ordered  the  Seventh  Fleet 
to  prevent  any  attack  on  Formosa.  As  a  corollary 
of  this  action,  I  am  calling  upon  the  Chinese 
Government  on  Formosa  to  cease  all  air  and  sea 
operations  against  the  mainland.  The  Seventh 
Fleet  will  see  that  this  is  done.  The  determination 
of  the  future  status  of  Formosa  must  await  the 
restoration  of  security  in  the  Pacific,  a  peace  set- 
tlement with  Japan,  or  consideration  by  the 
United  Nations. 

I  have  also  directed  that  United  States  forces  in 
the  Philippines  be  strengthened  and  that  military 
assistance  to  the  Philippine  Government  be  accel- 

I  have  similarly  directed  acceleration  in  the 
furnishing  of  military  assistance  to  the  forces  of 
France  and  the  Associated  States  in  Indochina  and 
the  dispatch  of  a  military  mission  to  provide  close 
working  relations  with  those  forces. 

I  know  that  all  members  of  the  United  Nations 
will  consider  carefully  the  consequences  of  this 
latest  aggression  in  Korea  in  defiance  of  the  Char- 
ter of  the  United  Nations.  A  return  to  the  rule  of 
force  in  international  affairs  would  have  far- 
reaching  effects.  The  United  States  will  continue 
to  uphold  the  rule  of  law. 

I  have  instructed  Ambassador  Austin,  as  the 
representative  of  the  United  States  to  the  Security 
Council,  to  report  these  steps  to  the  Council. 

Soviet  Help'Asked  To  Restore  Korean  Peace 

In  reply  to  inquiries  from  the  press  the  State 
Department  on  June  27  confirmed  that  the  American 
Embassy  at  Moscow  communicated,  on  that  date, 
with  the  Soviet  Foreign  Office  in  regard  to  the  inva- 
sion of  the  Republic  of  Korea  by  North  Korean 
armed  forces.  The  Embassy  asked  that  the  Soviet 
Government  use  its  influence  with  the  North  Korean 
authorities  for  the  withdrawal  of  the  invading  forces 
and  the  cessation  of  hostilities. 

July  3,  1950 

Remarks  hy  Secretary  Acheson 

At  his  news  conference  on  June  28  Secretary  Acheson 
made  the  following  extemporaneous  remarks  concerning 
the  announcement  hy  President  Truman  of  United  States 
support  for  the  Republic  of  Korea  in  accordance  with  the 
resolution  of  the  Security  Council  of  June  25. 

There  are  a  few  points  which  I  should  like  to 
make  before  we  go  into  the  questions  about  the 
matter  which  I  am  sure  is  uppermost  in  all  of  your 
minds.  That  is  the  announcement  by  the  Presi- 
dent yesterday  of  decisions  which  he  had  taken.  I 
will  not  go  into  those  decisions  in  detail  but  make 
some  points  about  them. 

The  first  point  I  want  to  make  is  our  feeling  of 
deep  gratitude  here  in  the  Department,  and  re- 
sponsibility also,  for  the  almost  unanimous  world 
reaction  which  has  come  from  the  action  taken  by 
the  United  Nations  and  from  the  announcement 
made  yesterday  by  the  President  of  his  actions  in 
support  of  the  United  Nations. 

In  all  parts  of  the  world  where  free  opinion  ex- 
ists, there  has  been  an  immediate  response — a 
response  to  the  realization  that  this  was,  if  there 
ever  was  in  the  world,  a  test  of  whether  the  United 
Nations  is  going  to  survive. 

This  attack  was  the  most  cynical,  brutal,  naked 
attack  by  armed  forces  upon  an  undefended  coun- 
try that  could  occur.  The  world  has  understood 
that,  and  it  has  understood  that  the  actions  taken 
by  the  United  States  have  been  taken  in  support 
of  the  United  Nations. 

The  second  point  I  want  to  make  is  that  as  soon 
as  we  knew  that  this  attack  had  taken  place,  and 
had  immediately  conveyed  that  information  to  the 
President  and  gotten  his  instructions,  it  was  the 
view  of  the  President,  and  of  the  entire  Govern- 
ment of  the  United  States,  that  our  first  responsi- 
bility was  to  report  this  to  the  United  Nations. 
This  was  done  in  the  middle  of  the  night  on  Sat- 
urday, June  24,  and  a  meeting  of  the  Security 
Council  was  called  on  Sunday,  June  25.  From 
then  on,  all  action  in  Korea  has  been  under  the 
aegis  of  the  United  Nations.  That  is  a  very 
important  point. 

The  next  point  that  I  want  to  make  is  one  that  I 
am  sure  you  understand.  It  is  that  the  entire  ac- 
tion of  the  Government  of  the  United  States,  since 
a  late  hour  on  Saturday  when  this  information 
came  to  us,  has  been  taken  under  Presidential  lead- 
ership and  direction.  Here,  as  in  many  other  situ- 
ations in  the  years  in  which  I  have  been  Under 
Secretary  and  Secretary,  the  President  has  been 

faced  with  the  most  difficult  decisions  which  had 
to  be  made  quickly,  and  after  taking  full  advice 
he  has  assumed  the  responsibility  and  he  has  made 
the  decision. 

The  fourth  point  I  would  like  to  make  is  that 
there  has  been  complete  unity  among  the  Presi- 
dent's advisers,  civil  and  military.  The  Depart- 
ments of  State  and  Defense  have  worked  practi- 
cally as  one  department  ever  since  this  matter 
arose,  and  in  anticipation  of  possible  difficulties 
of  this  sort,  so  that  we  were  able  on  the  shortest 
possible  notice  to  present  completed  staff  work  to 
the  President.  He  had  the  view  of  his  advisers 
without  having  differences  among  his  advisers. 

The  fifth  point  I  should  like  to  stress  is  the  unity 
which  existed  at  the  President's  meeting  yester- 
day, at  which  the  Secretary  of  Defense  and  I,  and 
our  advisers,  were  present  with  the  Congressional 
leaders.  Here,  again,  the  understanding  of  the 
problem,  the  understanding  of  the  actions  taken 
showed  complete  unity. 

The  sixth  point  I  should  like  to  make  is  that 
with  very  few  exceptions  the  press  and  radio  of 
the  United  States  has  been  unified  in  its  comments 
upon  what  was  done  and  the  necessity  for  doing  it. 
I  assume,  and  I  think  I  assume  justly,  that  that 
attitude  on  the  part  of  the  press  and  the  radio 
indicates  that  there  is  similar  unity  among  the 
people  of  the  United  States. 

Finally,  I  should  like  to  leave  with  you  the 
thought  that  the  complexities  and  difficulties  of 
the  international  situation  are  great.  This  is  a 
time  for  very  steady  and  sober  talk  and  action. 
It  is  not  a  time  for  general  speculation,  for  trying 
to  stir  up  difficulties  which  do  not  exist,  for  imag- 
ining possibilities  which  are  remote.  It  is  a  time 
for  the  very  greatest  steadiness,  and  it  is  a  time, 
as  I  have  often  said  in  the  past,  where,  more  than 
ever,  you  gentlemen  share  with  the  officials  of  the 
Government  a  very  deep  responsibility,  which  I 
feel  sure  you  are  quite  aware  of. 


Statement  hy  Ambassador  Warren  R.  Austin 
U.S.  Representative  to  the  Security  Council  ^ 

The  United  Nations  finds  itself  confronted  to- 
day with  the  gravest  crisis  in  its  existence. 

'  Made  before  the  Security  Council  on  June  27  and  re- 
leased to  the  press  by  the  U.S.  Mission  to  the  United 
Nations  on  the  same  date. 

Department  of  State  Bulletin 

Forty-eight  hours  ago  the  Security  Council,  in 
an  emergency  session,  determined  tliat  tlie  armed 
invasion  of  the  Republic  of  Korea,  by  armed  forces 
from  Northern  Korea,  constituted  a  breach  of  the 
peace.  Accordingly,  the  Security  Council  called 
for  a  cessation  of  hostilities  forthwith  and  the 
■withdrawal  by  the  Northern  Korean  authorities 
of  their  armed  forces  to  the  38th  Parallel.  The 
Security  Council  also  requested  the  United  Na- 
tions Commission  on  Korea  to  observe  the  with- 
drawal and  to  I'eport.  Finally,  the  Security  Coun- 
cil called  upon  all  members  to  render  every 
assistance  to  the  United  Nations  in  the  execution 
of  the  resolution  and  to  refrain  from  giving  assist- 
ance to  the  North  Korean  authorities. 

The  decision  of  the  Security  Council  has  been 
broadcast  to  the  Korean  authorities  and  is  known 
to  them.  We  now  have  before  us  the  report  of  the 
United  Nations  Commission  for  Korea  which  con- 
firms our  worst  fears.  It  is  clear  that  the  authori- 
ties in  North  Korea  have  completely  disregarded 
and  flouted  the  decision  of  the  Security  Council. 
The  armed  invasion  of  the  Republic  of  Korea  con- 
tinues. The  North  Korean  authorities  have  even 
called  upon  the  established  Government  of  the 
Republic  to  surrender. 

It  is  hard  to  imagine  a  more  glaring  example  of 
disregard  for  the  United  Nations  and  for  all  the 
principles  which  it  represents.  The  most  impor- 
tant provisions  of  the  Charter  are  those  outlawing 
aggressive  war.  It  is  precisely  these  provisions 
which  the  North  Korean  authorities  have  violated. 

It  is  the  plain  duty  of  the  Security  Council  to 
invoke  stringent  sanctions  to  restore  international 

The  Republic  of  Korea  has  appealed  to  the 
United  Nations  for  jsrotection.  I  am  happy  and 
proud  to  report  that  the  United  States  is  prepared 
as  a  loyal  member  of  the  United  Nations  to  furnish 
assistance  to  the  Republic  of  Korea. 

I  have  tabled  a  resolution  *  which  I  ask  the 
Council  to  consider  favorably  as  the  next  step  to 
restore  world  peace. 

That  resolution  is  as  follows: 
The  Security  Council, 

Having  Determined  that  the  armed  attack  upon  the 
Republic  of  Korea  by  forces  from  North  Korea  constitutes 
a  breach  of  the  peace, 

Having  Called  for  an  immediate  cessation  of  hostilities, 

Having  Called  upon  the  authorities  of  North  Korea  to 
withdraw  forthwith  their  armed  forces  to  the  38th  Par- 
allel, and 

Having  Noted  from  the  report  of  the  United  Nations 
Commission  for  Korea  that  the  authorities  in  North  Korea 
have  neither  ceased  hostilities  nor  withdrawn  their  armed 
forces  to  the  3Sth  Parallel,  and  that  urgent  military 
measures  are  required  to  restore  international  peace  and 
security,  and 

Having  Noted  the  appeal  from  the  Republic  of  Korea  to 
the  United  Nations  for  immediate  and  effective  steps  to 
secure  peace  and  security, 

Recommends  that  the  Members  of  the  United  Nations 
furnish  such  assistance  to  the  Republic  of  Korea  as  may 
be  necessary  to  repel  the  armed  attack  and  to  restore 
international  peace  and  security  in  the  area. 

This  is  the  logical  consequence  of  the  resolution 
concerning  the  complaint  of  aggression  upon  the 
Republic  of  Korea  adopted  at  the  473d  meeting  of 
the  Security  Council  on  June  25,  1950,  and  the 
subsequent  events  recited  in  the  preamble  of  this 
resolution.  That  resolution  of  June  25  called  upon 
all  members  to  render  every  assistance  to  the 
United  Nations  in  the  execution  of  this  resolution 

*  Adopted  by  the  Security  Council  on  June  27  by  a  vote 
of  7  (U.S.,  U.K.,  France,  China,  Cuba,  Ecuador,  and 
Norway)—!  (Yugoslavia),  with  2  abstentions  (Egypt  and 
India)  ;  the  U.S.S.R.  was  absent. 

Article  27  of  the  U.  N.  Charter 

1.  Each  member  of  the  Security  Council  shall 
have  one  vote. 

2.  Decisions  of  the  Security  Council  on  procedural 
matters  shall  be  made  by  an  aJfirmative  vote  of 
seven  members. 

3.  Decisions  of  the  Security  Council  on  all  other 
matters  shall  be  made  by  an  affirmative  vote  of 
seven  members  including  the  concurring  votes  of  the 
permanent  members ;  provided  that,  in  decisions  un- 
der Chapter  VI,  and  under  paragraph  3  of  Article 
52,  a  party  to  a  dispute  shall  abstain  from  voting. 

Article  28  of  U.  N.  Charter 

1.  The  Security  Council  shall  be  so  organized  as 
to  be  able  to  function  continuously.  Each  member 
of  the  Security  Council  shall  for  this  purpose  be 
represented  at  all  times  at  the  seat  of  the  Organi- 

2.  The  Security  Council  shall  hold  periodic  meet- 
ings at  which  each  of  its  members  may,  if  it  so 
desires,  be  represented  by  a  member  of  the  govern- 
ment or  by  some  other  specially  designated 

3.  The  Security  Council  may  hold  meetings  at 
such  places  other  than  the  seat  of  the  Organization 
as  in  its  judgment  wUl  best  facilitate  its  work. 

Editor's  Note:  A  Security  Council  practice  has 
developed  under  which,  if  a  permanent  member  of 
the  Security  Council  abstains  from  voting  on  a  non- 
procedural decision  of  the  Council,  such  abstention 
is  not  considered  to  be  a  veto. 

July  3,   1950 

and  to  refrain  from  giving  assistance  to  the  North 
Korean  authorities.  This  new  resolution  is  the 
logical  next  step.  Its  significance  is  affected  by  the 
violation  of  the  former  resolution,  the  continua- 
tion of  aggression,  and  the  urgent  military 
measures  required. 

I  wish  now  to  read  the  statement  which  the 
President  of  the  United  States  made  today  on  this 

critical  situation. 

[Here  follows  the  President's  statement  as  printed  in 
this  issue  on  page  5.] 

The  keynote  of  the  resolution  and  my  statement 
and  the  significant  characteristic  of  the  action 
taken  by  the  President  is  support  of  the  United 
Nations  purposes  and  principles — in  a  word 


The  instability  of  peace  the  world  over  is  due, 
in  large  measure,  to  deliberate  Soviet  policy  and 
actions  and  to  the  wholesale  Soviet  violation  of 
basic  agreemerds.  Because  of  the  U.S.S.R.''s  rec- 
ord in  ignoring  its  international  pledges,  the  faith 
of  the  world  in  Soviet  signatures  had  been  badly 
shattered.  Whether  it  be  the  Yalta  agreement  or 
a  treaty  of  friendship,  the  U.S.S.R.  has  chosen  to 
ignore  its  sworn  conwriitments  whenever  it  has 
found  such  action  advantageous  for  its  own 

As  it  ruthlessly  pursues  its  expansionist  objec- 
tives in  the  postwar  world,  the  Soviet  Union  is 
building  up  a  reputation  as  an  irresponsible  inter- 
national marauder.  Before  the  court  of  world 
opinion,  it  stands  indicted  for  disregarding  its 
international  treaties  and  agreements,  openly 
flouting  protocols  and  promises,  and  encouraging 
violations  of  basic  human  rights  by  other  treaty 
signatories.  Because  of  its  policy  of  refusal  to 
work  in  concert  with  other  nations,  its  preference 
for  abrupt  and  unauthorized  unilateral  action,  and 
its  apparent  determination  to  impose  its  will  upon 
the  world,  the  value  of  agreements  with  the  Soviet 
Union  has  been  nullified.  From  Yalta  to  the 
present,  the  broken  pledges  of  the  U.S.S.E.  have 
marked  international  relations.  A  review  of  this 
record  is  worthwhile.^ 


The  uncertain  peace  of  postwar  Europe  is  pri- 
marily due  to  the  fact  that  the  Russians  have  de- 
liberately undermined  the  foundations  upon  which 

'  This  study  brings  up  to  date  the  material  published  in 
the  BuiiETiN  of  June  6,  1948,  p.  738. 

peace  was  to  be  built.  The  Soviet  Union  has  vio- 
lated the  Yalta  agreement  of  February  1945,  the 
Potsdam  Declaration  of  July  1945,  and  the  peace 
treaties  so  far  concluded  with  the  ex-German  satel- 
lites. Soviet  violation  of  Allied  armistice  agree- 
ments, refusal  to  act  in  concert  with  the  other 
Allies  on  control  commissions,  and  even  the  ignor- 
ing of  the  decisions  of  the  Council  of  Foreign 
Ministers  can  be  added  to  those.  The  fact  that 
the  framework  of  peace  has  never  been  completed, 
that  Austria  still  pleads  for  a  treaty,  and  that  the 
settlement  of  the  German  question  still  plagues 
Europe  is  also  due  to  Soviet  intransigence  and  the 
unreliability  of  its  word. 


Wlien  the  Big  Three  met  at  Yalta  in  February 
1945,  the  three  Governments,  the  United  States, 
the  United  Kingdom,  and  the  U.S.S.R.,  agreed 
to  assist  liberated  people  to  form  "interim  gov- 
ernment authorities  broadly  representative  of  all 
democratic  elements  in  the  population  and  pledged 
to  the  earliest  possible  establishment  through  free 
elections  of  governments  responsive  to  the  will  of 
the  people."  According  to  James  F.  Byrnes,  for- 
mer Secretary  of  State,  Stalin  accepted  the  Yalta 
agreement  without  serious  discussion  and  in  an 
atmosphere  of  genial  camaraderie.  Yet,  Soviet 
action  has  consistently  undermined  and  made 
meaningless  this  fundamental  declaration. 

The  Potsdam  Decisions  and  the  Control  Council 

The  Potsdam  Declaration  of  July  1945  aimed  at 
the  ultimate  creation  of  a  unified,  democratic  Ger- 
many. To  achieve  this  aim,  the  powers  repre- 
sented at  the  conference  committed  themselves  to 

Deparfment  of  State  Bulletin 

the  destruction  of  German  militarism,  the  wiping 
out  of  nazisiu,  the  punishment  of  war  criminals, 
the  decentralization  of  the  political  structure  of 
Germany,  and  the  dissolution  of  concentrations  of 
economic  power.  A  new  democratic  German  gov- 
ermnent  was  to  be  developed  under  the  supervision 
of  an  Allied  Control  Council  (Ace),  and  the 
four  Allied  zone  commanders  were  to  enjoy  abso- 
lute sovereignty  in  their  respective  zones  unless 
their  powers  were  pre-empted  by  Ace  legislation. 
Besides  dealing  with  Germany,  the  United  States, 
the  United  Kingdom,  and  the  Soviet  Union  agreed 
at  Potsdam,  among  other  things,  to  consult  with 
each  other  with  a  view  to  revising  the  procedures 
of  Allied  Control  Commissions  for  Rumania,  Bul- 
garia, and  Hungary. 

The  lack  of  success  of  the  program  formulated 
at  Potsdam  can  be  laid  at  the  door  of  the  Soviet 
Union.  From  the  inception  of  the  Potsdam  pro- 
tocols, the  U.S.S.R.  has  a  record  of  wholesale  vio- 
lation of  the  agreement,  refusal  to  abide  by 
decisions  of  the  Control  Councils,  and  a  flagi'ant 
usurijation  of  power  on  the  Control  Councils  in 
the  satellite  area. 


Moreover,  in  dealing  with  Germany,  the  Soviet 
Union  has  readily  disregarded  promises  made  at 
meetings  of  the  Council  of  Foreign  Ministers 
(Cfm).  By  a  Cfm  decision  reached  at  Moscow, 
March  19-April  24,  IQIT,  all  German  prisoners  of 
war  were  to  be  repatriated  by  December  1,  1948. 
The  U.S.S.R.  not  only  did  not  return  all  German 
prisoners  by  tliat  date,  but  she  unilaterally  an- 
nounced a  new  deadline  of  January  1,  1950. 

Under  the  Paris  Cfm  communique  of  June  20, 

1949,  each  occupying  power  in  Germany  agreed  to 
insure  the  "normal  functioning"  of  transport  be- 
tween Berlin  and  the  zones  as  well  as  between  the 
Soviet  and  Western  zones.     Since  January   13, 

1950,  the  Soviet  authorities  have  intermittently 
interfered  with  traffic  between  Berlin  and  Western 

Violations  of  the  Peace  Treaties 

Upon  ratification  of  the  treaties  of  peace  with 
Hungary,  Bulgaria,  and  Rumania,  on  September 
15, 1947,  the  armistice  period  and  the  authority  of 
the  Allied  Control  Commissions  came  to  an  end. 
On  this  date,  the  treaties  entered  into  force,  and 
the  three  Governments  regained  a  type  of  nominal 
sovereignty.    In  fact,  however,  the  U.S.S.R.  con- 

tinued to  exercise  tutelary  powers  over  them.  In 
consequence,  the  implementation  of  the  treaties  is 
characterized  by  subservient  fulfillment  with  re- 
gard to  obligations  toward  the  U.S.S.R.  but  by 
evasion,  delay,  and  violations  with  reference  to  the 
Western  Allies.  The  Soviet  Union  condones  and 
in  many  cases,  abets  these  infringements  and,  as  the 
tutelary  power,  must  bear  responsibility  for  them. 


Under  the  peace  treaties,  the  Hungarian,  Bul- 
garian, and  Rumanian  Governments  undertook  to 
guarantee  the  enjoyment  of  human  rights  and 
fundamental  freedoms,  including  freedom  of  ex- 
pression, of  press  and  publication,  of  religious 
worship,  of  political  opinion,  and  of  public  meet- 
ing. The  U.S.S.R.  directly  aided  and  abetted 
these  Governments  in  failing  to  fulfill  these  human 
rights  clauses.  Freedom  of  expression  and  of  press 
and  publication  no  longer  exist  in  any  of  these 
countries.  Freedom  of  worship  is  interfered  with 
time  and  again,  either  through  subtle  methods  or 
through  drastic  procedures  such  as  the  trials  and 
imprisonments  of  church  leaders.  Freedom  of 
political  opinion  is  also  violated  by  the  forceful 
elimination  of  all  political  groups  opposing  the 
Communist-controlled  governments  of  these  coim- 

On  April  2,  1949,  the  United  States  and  Great 
Britain  charged  the  three  Governments  with  hav- 
ing violated  the  human-rights  obligations  of  the 
peace  treaties.  All  three  Governments  issued  de- 
nials and  indicated  their  unwillingness  to  adopt 
the  requested  remedial  measures.  The  United 
States  and  the  United  Kingdom  thereupon  in- 
formed them  that  in  the  British  and  American 
view  a  dispute  had  arisen  concerning  the  interpre- 
tation and  execution  of  the  peace  treaties.  Under 
the  treaties,^  any  dispute  concerning  the  execution 
of  the  treaties,  which  is  not  settled  by  diplomatic 
negotiations,  should  be  referred  to  the  heads  of  the 
United  States,  United  Kingdom,  and  U.S.S.R. 
missions  in  the  three  countries.  On  May  31,  1949, 
the  United  States  called  upon  the  United  Kingdom 
and  U.S.S.R.  to  hold  a  meeting  of  the  three  heads 
of  mission  in  each  country  to  settle  the  disputes 
which  had  arisen  over  noncompliance  with  the 
human-rights  clauses.  The  Soviet  Union,  in  a  note 
of  June  11,  1949,  refused  to  participate  in  the 
meetings,  contending  that  no  such  disputes  had 

'  Art.  40,  Hungarian  treaty ;  art.  36,  Bulgarian  treaty ; 
and  arts.  37  and  38,  Rumanian  treaty. 

July  3,   1950 

arisen  and  that  there  was,  therefore,  no  reason  for 
such  a  meeting.  A  second  United  States  note,  de- 
livered June  30,  1949,  expressed  regret  for  the 
Soviet  Union's  disregard  of  the  provisions  of  the 
treaties  and  again  asserted  that  disputes  did  exist 
between  the  United  States  and  the  three  satellite 
Governments.  In  a  memorandum  dated  July  19, 
1949,  the  Soviet  Union  reaffirmed  its  previous  con- 
tention and,  since  that  time,  has  consistently  re- 
fused to  participate  in  a  meeting  on  the  matter. 

By  its  stand,  the  Soviet  Union  violates  the  dis- 
putes clause  of  the  peace  treaties  and  the  offending 
countries  are  encouraged  to  continue  systematically 
and  willfully  to  violate  their  treaties. 

Besides  the  flagrant  violations  of  the  human- 
rights  clauses,  there  have  been  other  treaty  viola- 
tions. In  each  instance,  the  attitude  of  the  Soviet 
Government  is  to  condone  the  violation. 


Under  article  10  of  her  treaty,  Hungary  under- 
took to  honor  her  prewar  bilateral  treaties  with 
the  Allied  and  Associated  Powers,  provided  that 
the  other  contracting  party  notified  the  Hungarian 
Government,  within  a  period  of  6  months  of  the 
coming  into  force  of  the  peace  treaty,  that  she 
desired  to  keep  in  force  or  revive  the  bilateral 
treaty  in  question.  Among  the  prewar  treaties 
coming  under  the  provisions  of  this  article  was 
the  Treaty  of  Friendship,  Commerce,  and  Naviga- 
tion of  1925  between  the  United  States  and  Hun- 
gary. Although  the  United  States  Government 
duly  notified  Hungary,  within  the  prescribed 
6-month  period,  that  she  desired  to  keep  this  bilat- 
eral treaty  in  force,  the  Hungarian  Government 
has  evaded  and  refused  to  fulfill  its  obligations 
under  article  10  in  at  least  two  notable  instances : 
first,  in  the  seizure  of  United  States  property ;  and 
second,  in  the  arrest  and  trial  of  two  American 
citizens,  Robert  Vogeler  and  Israel  Jacobson,  who 
were  held  incommunicado  without  access  to  United 
States  consular  officers. 

Under  article  23  of  the  peace  treaty,  Hungary 
undertook  to  pay  the  sum  of  100  million  dollars 
as  reparations  to  Czechoslovakia  and  Yugoslavia. 
On  February  27,  1949  (after  the  Moscow-inspired 
Cominform  declaration  of  June  28,  1948,  against 
Yugoslavia),  the  Yugoslav  Minister  to  Hungary 
delivered  a  note  to  the  United  States  Legation  at 
Budapest  stating  that  the  Hungarian  Govern- 
ment had  failed  to  abide  by  article  23  of  the  treaty 
and  that,  as  a  result  of  the  ill  will  of  the  Hungar- 

ian Government,  the  enforcement  of  article  23 
could  not  be  carried  out  by  direct  negotiations 
between  the  two  Governments.  The  Hungarian 
Govei-nment  has,  to  this  day,  refused  to  comply 
with  article  23  of  the  treaty,  and  the  Soviet  Gov- 
ernment has  refused  to  participate  in  a  meeting 
of  the  three  heads  of  mission  at  Budapest,  pro- 
vided for  in  article  40  of  the  treaty  for  the  settle- 
ment of  disputes  which  cannot  be  solved  by  direct 

Under  article  28  of  the  treaty,  Hungary  under- 
took to  restore  all  legal  rights  and  interests  of  the 
United  Nations  and  their  nationals,  as  they  existed 
on  September  1,  1939,  as  well  as  to  compensate 
such  persons  for  property  loss  and  war  damage. 
The  Hungarian  Government  has  given  no  indica- 
tion that  she  intends  to  compensate  American  cit- 
izens. On  November  8,  1949,  the  United  States 
Legation  at  Budapest  transmitted  to  the  Hungar- 
ian Minister  for  Foreign  Affairs  four  new  claims 
and  additional  evidence  with  regard  to  116  previ- 
ous claims.  Although  Hungary  has  acknowledged 
receipt  of  the  note,  she  has  taken  no  action  to  fulfill 
these  claims. 


The  U.S.S.R.  has  openly  aided  and  abetted  the 
Bulgarian  Government  in  failing  to  fulfill  com- 
pletely or  in  totally  ignoring  treaty  provisions  lim- 
iting the  armed  forces.^  The  Soviet  Union  ac- 
complished this  fact  by  supplying  Bulgaria  with 
arms,  ammunition,  and  equipment  in  excess  of 
those  needed  for  the  armed  foi'ce  stipulated  by  the 
peace  treaty.  In  addition,  the  U.S.S.R.,  by  nega- 
tive and  extremely  dilatory  acts,  is  tolerating  Bul- 
garian failure  to  reduce  these  forces  to  the  limits 
prescribed  in  article  10.  The  U.S.S.R.,  by  nega- 
tive and  obstructionist  tactics,  aided  and  abetted 
the  Bulgarian  Government  in  the  formation,  main- 
tenance, and  training  of  paramilitary  organiza- 
tions, i.  e.,  the  militia  and  the  use  of  this  organ- 
ization by  the  Bulgarians  to  violate  both  the  spirit 
and  letter  of  article  2,  the  human-rights  clause  of 
the  treaty.  The  U.S.S.R.,  encourages  the  Bul- 
garian Government  to  deny  the  Governments  of 
the  United  States  and  United  Kingdom  their 
rights,  under  the  terms  of  the  treaty,  to  informa- 
tion pertaining  to  the  Bulgarian  armed  forces  or 
the  right  to  gather  such  information  by  investiga- 
tion. The  Soviet  Government  declined  the  United 
States-United  Kingdom  invitation  to  name  a  So- 

'  Arts.  9,  10,  11,  and  12. 


DepartmenI  of  State  Bulletin 

viet  rein-esentative  to  participate  in  a  proposed 
survey  of  the  Greco-Bulgarian  border.*  It,  there- 
by, encouraged  the  Bulgarian  Government's  reply 
that,  under  the  terms  of  the  peace  treaty,  the  mat- 
ter should  be  referred  to  the  United  States,  United 
Kingdom,  and  U.S.S.R.  diplomatic  missions.  ( The 
Soviet  Government  had  already  refused  to  partici- 
pate in  any  such  conventions  under  article  3G  of  the 
peace  treaty  to  settle  disputes  concerning  the  in- 
terpretation or  execution  of  the  Bulgarian  peace 


As  in  Bulgaria,  the  Soviet  Government  has  con- 
sistently refused  to  cooperate  with  American  and 
British  chiefs  of  mission  to  consider  the  princi- 
ples involved  in  the  implementation  of  the  mili- 
tary clauses  of  the  peace  treaty  with  Rumania. 
Both  the  Soviet  and  British  chiefs  of  mission 
agreed  to  a  meeting  on  this  matter,  scheduling  it 
for  May  18,  1948.  However,  the  Soviet  Ambas- 
sador cancelled  the  scheduled  meeting,  saying  that 
he  was  "indisposed,"'  and,  on  May  26,  1948,  he 
addressed  a  note  to  the  American  Minister  stating 
that  there  was  no  necessity  for  the  proposed  meet- 
ing and  no  reason  for  putting  the  proposal  into 
effect.  Thus,  the  Rumanian  Government  has  felt 
free  to  violate  the  military  provisions  of  the  peace 

Violations  of  Agreement  With  Iran 

Soviet-Iranian  relations  are  based  formally  on 
the  treaty  of  friendship  of  February  26,  1921, 
which  was  reaffirmed  in  1928.  Article  IV  of  this 
treaty  states : 

In  consideration  of  the  fact  that  each  nation  has  the 
right  to  determine  freely  its  political  destiny,  each  of  the 
two  contracting  parties  formally  expresses  its  desire  to 
abstain  from  any  intervention  in  the  internal  affairs  of 
the  other. 

In  1942,  the  U.S.S.R.,  United  Kingdom,  and  Iran 
signed  a  treaty  of  alliance  in  which  the  two  large 
powers  agreed  to  respect  the  territorial  integrity, 
sovereignty,  and  independence  of  Iran.  In  the 
1943  Tehran  declaration,  the  U.S.S.R.,  United 
Kingdom,  and  the  United  States  expressed  their 
desire  for  the  maintenance  of  the  independence, 
sovereignty,  and  territorial  integrity  of  Iran.  As 
a  signer  of  the  United  Nations  Charter,  the 
U.S.S.R.  subscribed  to  article  II  (par.  4),  which 
states : 

*  Note  No.  056  of  Feb.  16.  1948. 

All  members  shall  refrain  in  their  international  rela- 
tions from  the  threat  of  use  of  force  against  the  territorial 
integrity  or  political  independence  of  any  State,  or  in  any 
manner  inconsistent  with  the  purposes  of  the  United 

The  U.S.S.R.,  in  her  relations  with  Iran,  has  vio- 
lated all  of  these  solemn  commitments. 

The  Soviet  Government,  in  a  note  to  the  United 
States  on  November  29, 1945,  admitted  that  Soviet 
forces  in  Iran  had  prevented  Iranian  troops  from 
taking  action  after  the  outbreak  against  the  Iran- 
ian Government  in  northern  Iran.  This  Soviet 
action  at  least  indirectly  aided  the  Azerbaijan  sep- 
aratists and,  thus,  constituted  interference  in  the 
internal  affairs  of  Iran,  in  violation  of  its  1921 
pledge  of  friendship.  Furthermore,  violations  of 
the  tripartite  treaty  occurred  both  during  and 
after  World  War  II.  By  supporting  the  Azer- 
baijan separatists  while  occupying  Iran  and  by  its 
refusal  to  evacuate  its  troops  except  under  United 
Nations  pressures,  the  U.S.S.R.  violated  the 
Tehi-an  declaration.  The  Iranian  appeal  to  the 
Security  Council  in  January  1946  and  its  notifica- 
tion to  the  Council  on  December  5,  1946,  that  the 
U.S.S.R.  had  warned  Iran  to  refrain  from  moving 
troops  into  Azerbaijan  were  both  based  upon 
charges  of  Soviet  interference  in  the  internal  af- 
fairs of  Iran  in  violation  of  the  United  Nations 
Charter.  Moreover,  the  Soviet  radio  has  repeat- 
edly attacked  the  Iranian  Government  on  false 
grounds,  has  incited  the  Iranian  people  to  violent 
action  against  the  government,  and  has  given  sup- 
port to  the  illegal  Tudeh  Party. 

Violation  of  Agreements  Involving  the  Far  East 


The  Soviet  Government  openly  violated  the 
joint  United  States-U.S.S.R.  Moscow  agreement 
for  the  reestablishment  of  Korean  independence 
and  the  economic  recovery  of  the  country.  The 
two  powers  were  to  consult  in  the  preparation  of 
proposals  for  the  formation  of  a  provisional  Ko- 
rean government.  The  U.S.S.R.  representative  on 
the  Joint  Control  Commission  consistently  refused 
to  allow  such  consultation  except  under  unilateral 
interpretations  of  the  phrase  "democratic  parties 
and  social  organizations"  which,  in  each  case, 
would  have  excluded  all  but  pro-Soviet  political 
groups.  Moreover,  the  Soviet  delegation  refused 
to  consult  with  Korean  groups  whose  representa- 
tives had  at  any  time  expressed  opposition  to  the 

July  3,   7950 


provision  for  placing  Korea  under  trusteeship,  as 
envisaged  in  the  Moscovf  agreement. 

The  Joint  Commission  agreed  to  reestablish  the 
movement  of  persons,  motor,  rail  transport,  and 
coastwise  shipping  between  the  zones  of  north  and 
south  Korea.  The  Soviet  Command  in  north 
Korea  refused  to  discuss  or  implement  this  agree- 
ment and  resisted  efforts  toward  reestablishing 
the  natural  economic  unity  of  the  country.  Con- 
cessions to  economic  coordination  were  made  only 
on  a  barter  basis.  No  regularized  movement  of 
persons  or  transport  was  established  beyond  that 
allowed  the  United  States  to  supply  her  outposts 
that  were  accessible  only  by  roads  through  Soviet- 
occupied  territory. 


In  the  terms  of  the  Potsdam  Declaration,  defin- 
ing the  conditions  for  the  Japanese  surrender. 

Japanese  military  forces,  after  being  completely 
disarmed,  were  to  be  permitted  to  return  to  their 
homes,  "with  opportunity  to  lead  peaceful,  pro- 
ductive lives."  On  December  8, 1949,  the  U.S.S.R. 
signed  the  Geneva  Prisoners  of  War  Convention, 
setting  forth  the  rights  and  obligations  of  coun- 
tries holding  prisoners  of  war. 

TASS,  the  official  Soviet  news  agency,  on  May 
20,  1949,  declared  that  there  were  95,000  Japanese 
prisoners  of  war  in  Soviet-held  territory  still 
awaiting  repatriation.  According  to  Japanese 
figures,  an  additional  376,929  Japanese  were  then 
still  under  Soviet  control.  The  discrepancy  is  ex- 
plicable either  by  continued  detention  of  Japanese 
prisoners  or  an  abnormally  high  death  rate.  The 
U.S.S.R.  refuses  to  give  any  information  on  the 
matter  and  has  walked  out  of  Control  Council 
meetings  in  which  the  problem  was  broached. 

The  Korean  Experiment  in  Representative  Government 

Statement  hy  John  Foster  Dulles 
Consultant  to  the  Secretary  ^ 

The  American  people  salute  the  Korean  nation. 
We  honor  the  valiant  struggle  you  are  making  for 
liberty — human  liberty  and  national  liberty. 

The  American  people  enlisted  in  that  struggle 
175  years  ago.  We  were,  then,  few,  poor,  divided, 
and  menaced.  There  were  only  about  3  million  of 
us.  We  were  living  precariously  off  the  soil  and 
the  seas.  We  had  been  divided  by  loyalties  to  13 
rival  sovereign  states.  We  were  closely  pressed 
by  the  great  military  powers  of  that  time — Spain 
to  the  south,  England  and  France  to  the  north,  and 
Russia,  which  had  moved  into  our  continent,  in 
the  west.  Nevertheless,  our  founders  saw  that 
Providence  had  given  our  people  a  unique  oppor- 
tunity' to  show  that  a  free  society  could  develop  a 
spiritual,  intellectual,  and  material  richness  which 
could  not  be  matched  by  a  society  of  dictatorship 
and  that,  if  we  took  advantage  of  that  opportunity, 
our  example  would  stimulate  men  elsewhere  to  cast 
off  the  shackles  of  despotism.  From  its  beginning, 
our  effort  was  consciously  related  to  the  general 
welfare  of  mankind. 

We  went  through  many  dark  days  and  long 
nights.    But  our  exj^eriment  succeeded.    Our  con- 

'  Made  before  the  National  Assembly  of  the  Republic  of 
Korea  at  Seoul,  Korea,  on  June  19  and  released  to  the  press 
on  the  same  date. 

duct  and  example,  despite  many  faults,  did  help 
to  show  the  infinite  possibilities  of  free  men,  and  it 
encouraged  men  everywhere  to  pry  loose  the  grip 
of  despotism  and  to  take  command  of  their  own 
destiny.  The  nineteenth  century  was,  in  most  of 
the  world,  an  era  of  human  liberation. 

But  the  battle  between  liberty  and  despotism  is 
never-ending.  It  has  no  limits  either  in  space  or 
in  time.  It  is  part  of  the  constant  struggle  between 
good  and  evil,  a  struggle  that  seems  to  have  been 
ordained  for  the  testing  of  man. 

DesiJotism,  thrown  onto  the  defensive  in  the 
nineteenth  century,  has  resumed  the  offensive  in 
the  twentieth  century.  Already,  the  United  States 
has  twice  intervened  with  armed  might  in  defense 
of  freedom  when  it  was  hard-pressed  bj'  unpro- 
voked military  aggression.  We  were  not  bound  by 
any  treaty  to  do  this.  We  did  so  because  the 
American  people  are  faithful  to  the  cause  of 
human  freedom  and  loyal  to  those  everywhere 
who  honorably  support  it. 

Today,  the  Korean  people  are  in  the  front  line 
of  freedom,  under  conditions  that  are  both  dan- 
gerous and  exciting.  You  emerged  from  over  40 
years  spent  under  Japanese  militarism.  But  you 
have  not  emei'ged  into  conditions  of  placid  ease. 
Instead,  you  encounter  a  new  menace,  that  of  So- 


Depaiiment  of  Sfafe  Bulletin 

viet  communism.  It  denies  the  spiritual  worth  and 
dignity  of  the  individual  human  being.  It  insists 
that  ail  men  should  be  regimented  into  a  pattern 
of  conduct  made  for  them  in  Moscow.  It  seeks 
to  impose  that  degrading  concept  upon  all  men 

Taking  advantage  of  Japanese  surrender  terms, 
Soviet  communism  has  seized  in  its  cruel  embrace 
the  Korean  people  to  the  north  of  the  38th  Paral- 
lel ;  and,  from  that  nearby  base,  it  seeks,  by  terror- 
ism, fraudulent  propaganda,  infiltration,  and  in- 
citement to  civil  unrest,  to  enfeeble  and  discredit 
your  new  Republic,  hoping,  no  doubt,  that  the 
people  might,  m  despair,  accept  the  iron  discipline 
of  the  Soviet  Communist  Party. 

That  is  a  hard  test  for  those  who  are  only  newly 
training  in  the  practice  of  representative  govern- 

Some  observers  felt  that  your  task  was  a  hope- 
less one.  You  have  proved  them  to  be  wrong. 
Your  faith  and  your  works  have  confounded  the 
skeptics.  You  have  already  held  two  general  elec- 
tions in  an  atmosphere  free  of  terrorism,  and  a 
very  high  percentage  of  all  eligible  voters  have 
participated.  Out  of  your  electoral  processes,  has 
come  a  stable  and  representative  government. 
You  have  developed  a  strong,  disciplined,  and 
loyal  defense  establishment.  Through  hard  work, 
you  are  steadily  improving  your  country's  eco- 
nomic condition. 

There  is  solid  ground  for  encouragement.  No 
doubt,  there  are  difficult  days  ahead  and  many 
problems  yet  unsolved,  some  internal,  some  exter- 
nal. But  what  has  already  happened  shows  that 
it  lies  within  your  power  to  achieve  the  goal  of  a 
Korea  that  is  strong  and  free.  Nothing  can  pre- 
vent that  if  you  persist  in  your  resolute  will  to  be 
free,  and  if  each  of  you  individually  exercises  the 
self-controls  that  are  required  for  the  general 
good.  A  free  society  is  always  a  society  of  di- 
versity. That  is  the  secret  of  its  richness.  But 
also  it  is  a  society  in  which  men  must  voluntarily 
curb  their  individualism  to  the  extent  needed  to 
enable  the  nation  as  a  whole  to  avoid  frustration 
and  to  achieve  creation. 

As  you  establish  here  in  South  Korea  a  whole- 
some society  of  steadily  expanding  well-being,  you 
will  set  up  peaceful  influences  which  will  disinte- 
grate the  hold  of  Soviet  communism  on  your  fel- 
lows to  the  north  and  irresistibly  draw  them  into 
unity  with  you.  Never,  for  a  minute,  do  we  con- 
cede that  Soviet  Communists  will  hold  perma- 
nently their  unwilling  captives.  No  iron  curtain 
can  indefinitely  block  off  the  attracting  force  of 
what  you  do  if  you  persist  in  the  way  you  have 
been  going. 

You  are  conducting  what  may  go  down  in  his- 
tory as  the  Great  Korean  Experiment,  an  experi- 
ment which,  in  its  way,  can  exert  a  moral  influ- 
ence in  the  twentieth  century  as  prof  oimd  as  that 

which,  in  the  nineteenth  century,  was  exerted  by 
what  was  then  called  the  Great  American  Experi- 
ment. That  is  why  the  eyes  of  the  free  world  are 
fixed  upon  you.  You  carry  the  hopes  and  aspira- 
tions of  multitudes. 

The  American  people  give  you  their  support, 
both  moral  and  material,  consistent  with  your  own 
self-respect  and  your  primary  dependence  on  your 
own  efforts. 

W&  look  on  you  as,  spiritually,  a  part  of  the 
United  Nations  which  has  acted  with  near  una- 
nimity to  advance  your  political  freedom,  which 
seeks  your  unity  with  the  north  and  which,  even 
though  you  are  technically  deprived  of  formal 
membership,  nevertheless  requires  all  nations  to 
refrain  from  any  threat  or  use  of  force  against 
your  territorial  integrity  or  political  independence. 

The  American  people  welcome  you  as  an  equal 
partner  in  the  great  company  of  those  who  com- 
prise the  free  world,  a  world  which  commands 
vast  moral  and  material  power  and  resolution  that 
is  unswerving.  Those  conditions  assure  that  any 
depotism  which  wages  aggressive  war  dooms  itself 
to  unutterable  disaster. 

The  free  world  has  no  written  charter,  but  it  is 
no  less  real  for  that.  Membership  depends  on  the 
conduct  of  a  nation  itself;  there  is  no  veto.  Its 
compulsions  to  common  action  ai'e  powerful,  be- 
cause they  flow  from  a  profound  sense  of  common 

You  are  not  alone.  You  will  never  be  alone  so 
long  as  you  continue  to  play  worthily  your  part 
in  the  great  design  of  human  freedom. 

Tax  Treaty  Negotiations 
To  Open  With  Israel 

[Released  to  the  press  June  16] 

United  States  and  Israeli  tax  officials  are  ex- 
pected to  meet  at  Washington  on  July  10,  1950, 
for  technical  discussions  of  possibilities  for  im- 
proving tax  relations  between  the  two  countries 
and  to  consider  whether  a  basis  exists  for  conven- 
tions for  the  avoidance  of  double  taxation  with 
respect  to  taxes  on  income  and  to  taxes  on  the 
estates  of  deceased  persons. 

If  a  basis  for  conventions  is  found,  drafts  of 
the  proposed  terms  will  be  prepared  by  the  partici- 
pants and  submitted  to  their  respective  govern- 
ments for  consideration  with  a  view  to  signing. 

In  preparation  for  the  discussions,  interested 
persons  are  invited  to  submit  information  and  sug- 
gestions to  Mr.  Eldon  P.  King,  Special  Deputy 
Commissioner  of  Internal  Revenue,  Bureau  of  In- 
ternal Revenue,  Washington  25,  D.  C. 

July  3,   1950 



Address  hy  Secretary  Acheson  ^ 

For  years  to  come,  no  Secretary  of  State  will 
speak  at  Harvard  without  tliinking  of  General 
Marshall's  address  here  3  years  ago.  That  speech 
was  an  act  of  far-reaching  importance.  It  may  be 
useful  for  his  successor  to  put  that  act  in  a  setting 
in  history  and  to  show  where  it  has  led  and  where 
it  is  now  leading  us. 

Not  2  years  had  then  passed  from  the  end  of  the 
war,  but  our  hopes  for  the  postwar  world  were 
already  dimmed. 

In  the  anguish  of  war,  the  world  had  resolved 
to  build  a  new  order  in  which  peace,  freedom,  and 
justice  would  be  secure.  These  aspirations  were 
expressed  in  the  Charter  of  the  United  Nations. 
If  ever  a  document  spoke  the  feeling  in  the  hearts 
of  all  mankind,  that  document  was  the  Charter. 

It  pledged  that  the  nations  would  live  together 
as  good  neighbors;  that  they  would  unite  their 
strength  to  maintain  the  peace;  that  armed  force 
would  not  again  be  used,  save  in  the  common  in- 
terest ;  that  they  would  work  together  to  advance 
the  well-being  of  all  men  everywhere. 

That  document  was  signed  5  years  ago  next 

It  was  essential  to  the  success  of  this  organiza- 
tion, as  Mr.  Cordell  Hull  had  said  on  April  9, 1944, 
that  the  major  powers  recognize  and  harmonize 
their  basic  interests. 

The  foreign  policy  of  the  United  States  was 
firmly  founded  on  the  belief  that  this  could  be 
done.  We  hoped  that  the  union  of  our  efforts  with 
those  of  our  Allies  in  time  of  war  could  be  con- 

'  Delivered  before  the  Harvard  Alumni  Association, 
Cambridge,  Mass.,  on  June  22  and  released  to  the  press 
on  the  same  date. 


tinned.  To  this  end,  we  were  determined  to  ac- 
commodate our  basic  interests  with  those  of  other 

That  determination  found  expression  in  our 

Differences  there  were,  but  that  was  to  be  ex- 
pected. We  were  prepared  to  look  upon  them  as 
the  natural  residue  of  years  of  mutual  mistrust. 
We  were  prepared  to  honor  our  wartime  commit- 
ments and  the  security  requirements  of  other  na- 
tions. The  overwhelming  sentiment  of  our  people 
favored  settlement  of  our  points  of  friction,  as 
we  regarded  them,  the  immediate  demobilization 
of  our  armed  forces  and  the  inauguration  of  the 
new  era  of  peace. 

But,  as  the  ominous  portents  grew,  doubt  also 
grew  as  to  whether  one  of  our  late  allies  was,  in 
fact,  intent  on  cooperation. 

Review  of  Soviet  Actions  Since  1945 

The  year  of  the  San  Francisco  conference  was 
also  the  year  in  which  the  Soviet  Union  renewed 
intimidating  pressures  upon  its  neighbors,  Iran 
and  Turkey.  It  was  the  year  in  which  the  Soviet 
Union,  in  violation  of  agreements  on  which  the  ink 
was  scarcely  dry,  imposed  governments  of  its  own 
choosing  on  Bulgaria  and  Rumania  and  supported 
the  imposition  of  a  minority  regime  in  Poland. 

In  the  following  year,  1946,  the  sequence  of 
Soviet  actions  filled  out  an  unmistakable  pattern. 
This  was  the  year  in  which  the  head  of  the  Soviet 
state  made  it  clear  in  a  speech  to  his  people  that  the 
wartime  alliance  with  the  non-Communist  world 
was  at  an  end.  This  speech  was  followed  by  a 
propaganda  campaign  of  unrestrained  hostility 

Dspattmen\  of  State  Bulletin 

against  our  country,  which  has  continued  to  this 

This  was  the  year  also  in  which  Soviet  leaders 
began  a  program  of  assistance  to  Communist-dom- 
inated guerrillas  in  Greece  and  increased  their 
l^ressure  on  Turkey  for  control  of  the  Straits. 
This  was  the  year  when  Soviet  action  in  Germany 
foreshadowed  its  intention  to  break  up  the  four- 
]iower  control  arrangement  and  to  Sovietize  the 
Eastern  zone,  which  it  controlled.  This  was  the 
year  in  which  the  Soviet  Union  walked  out  of  the 
Security  Council  when  called  upon  to  honor  its 
agreement  to  withdraw  its  troops  from  Iran. 

In  this  year,  also,  the  Soviet  control  of  Hungary 
was  consummated.  In  this  year,  the  international 
Communist  movement  began  its  efforts  to  block 
the  political  and  economic  recovery  of  France  and 
Italy  by  strikes  and  other  disruptive  activities  of 
its  parties  in  these  countries. 

The  pattern  was  plain.  Wherever  the  force  of 
Soviet  arms  prevailed,  the  Soviet  Union  would 
take  over  virtual  control.  Where  Soviet  armed 
forces  could  not  reach,  the  international  Commu- 
nist movement  was  used  to  gain  control  by  subver- 

American  Response  to  Soviet  Actions 

Three  events  which  took  place  in  1947  helped  to 
crystallize  the  American  response  to  Soviet  con- 

The  first  of  these  was  President  Truman's  mes- 
sage to  Congress  of  March  12,  requesting  fimds  for 
the  Greek- Turkish  Aid  Program.  In  his  message, 
the  President  declared  it  to  be  the  policy  of  the 
United  States — 

...  to  support  free  peoples  who  are  resisting  attempted 
subjugation  by  armed  minorities  or  by  outside  pressures. 

.  .  .  We  must  assist  free  peoples  to  work  out  their  own 
destinies  in  their  own  way. 

The  second  event  of  1947  was  the  speech  of  Gen- 
eral Marshall  from  this  platform  on  June  5th. 

Its  purpose  was  the  revival  of  the  working  econ- 
omy of  the  world  so  that  free  institutions  could 

Less  than  1  month  later,  the  Soviet  Foreign  Min- 
ister, Mr.  Molotov,  walked  out  of  the  conference 
at  Paris  at  which  the  European  Recovery  Program 
was  launched. 

That  the  Soviet  Union  would  not  only  refuse 
to  participate  in  the  European  Recovery  Program 
but  would  also  sabotage  the  effort  was  made  ex- 

plicit 2  months  later  at  the  founding  of  the  Com- 
munist Information  Bureau. 

There,  the  Soviet  delegate  announced  that  the 
Soviet  Union  would  bend  every  effort  in  order 
that  the  European  Recovery  Program  be  doomed 
to  failure. 

The  Soviet  effort  to  defeat  the  program  did  not 
succeed.  But  its  decision  to  obstruct  rather  than 
participate  did  much  to  sharpen  the  cleavages  of 
a  divided  world. 

The  third  event  in  1947  which  helped  to  mark 
and  to  crystallize  a  development  in  American 
thinking  was  the  London  meeting  of  the  Council  of 
Foreign  Ministers,  and  General  Marshall's  report 
to  the  American  people  upon  his  return,  on  De- 
cember the  19th. 

In  analyzing  the  reason  for  the  frustration  we 
had  encountered  in  our  efforts  to  reach  an  agree- 
ment with  the  Soviet  Union  on  Germany,  General 
Marshall  concluded — and  this  was  a  significant 
step  in  the  development  of  our  thinking — that  until 
the  political  vacuum  created  by  the  war  had  been 
filled  by  the  restoration  of  a  healthy  European 
community,  we  would  not  be  able  to  achieve  any 
genuine  agreements  with  the  Soviet  Union. 

Agreements  between  sovereign  states,  General 
Marshall  reminded  us,  are  usually  the  reflection 
and  not  the  cause  of  genuine  settlements. 

This  was  the  issue,  he  said :  we  would  not  have 
a  settlement  until  the  coming  months  had  dem- 
onstrated whether  or  not  the  civilization  of  West- 
ern Europe  would  prove  vigorous  enough  to  rise 
above  the  destructive  effects  of  the  war  and  restore 
a  healthy  society. 

As  the  issue  became  understood  in  these  terms 
by  the  American  people  and  the  other  people  of 
the  Western  world,  they  responded  with  a  succes- 
sion of  measures  looking  toward  the  strengthening 
of  the  free  world. 

The  pace  of  this  response  was  quickened  by  the 
Communist  seizure  of  Czechoslovakia,  2  months 

The  formation  of  the  Western  Union  and  the 
signing  of  a  defense  treaty  at  Brussels  in  the  early 
months  of  1948  gave  expression  to  the  European 
resolve  to  unite  both  political  and  military  strength 
in  the  common  defense. 

This  country,  in  statements  by  the  President  and 
a  resolution  of  the  Senate,  announced  its  support 
of  these  efforts  and  its  desire  to  help  them. 

In  his  inaugural  address  of  January  20,  1949, 
the  President   announced   the  intention   of    the 

July  3,    7950 


United  States  to  enter  into  a  treaty  for  the  defense 
of  North  Atlantic  Area  and  to  supply  military 
assistance  to  free  nations. 

Success  of  U.S.  Efforts 
To  Strengthen  Free  World 

In  the  17  months  which  have  since  passed,  we 
have  witnessed  the  rapid  emergence  of  the  North 
Atlantic  community  as  a  political  reality. 

An  unj^recedented  rate  of  economic  recovery 
has  now  brought  the  productivity  of  Western 
Europe,  for  the  most  part,  above  prewar  levels. 
Long-range  economic  problems  are  being  met  with 
vigor  and  initiative.  The  nations  of  the  North 
Atlantic  community  are  building  a  common  de- 
fense system  for  the  primary  purpose  of  prevent- 
ing any  further  acts  of  aggression  against  this 

These  measures  of  coalescence  and  of  strength 
evidence  the  determination  of  the  free  world  that 
the  Soviet  Union  shall  not,  by  coercion  or  subver- 
sion, destroy  the  independence  of  free  states. 

Wherever  free  men  and  their  governments  have 
been  determined  to  preserve  their  freedom  and 
their  independence  and  where  assistance  from  the 
United  States  could  help  them  to  do  so,  we  have 
given  our  help.  Our  aid  is  a  supplement  and  not 
a  substitute.  We  have  seen,  in  China,  that  even 
help  on  a  great  scale  cannot  replace  the  will  of  the 
people  and  their  goveinment  to  preserve  their 

Elsewhere  in  the  world,  the  assistance  and  en- 
couragement we  have  given  to  men  who  were 
stoutly  helping  themselves  have  been  of  decisive 
importance.  In  accordance  with  our  American 
traditions  and  the  responsibilities  which  our  times 
have  thrust  upon  us,  we  have  exercised  a  position 
of  leadership  in  strengthening  the  free  world. 

In  the  period  we  have  been  discussing,  there 
have  been  a  number  of  Secretaries  of  State  in  this 
country.  There  has  been,  however,  but  one  Presi- 
dent. The  successive  decisions — and  they  were 
hard  decisions — by  which  this  policy  has  been 
developed  and  applied  were  made  by  the  President. 

The  consistency  of  purpose  reflected  in  these 
decisions,  which  I  have  enumerated,  is  evident  to 
all  in  retrospect.  They  are  successive  signposts, 
with  a  constancy  of  destination. 

Our  goal  has  not  changed.  We  continue  to  strive 
for  the  fulfillment  of  the  aspirations  to  which  we 
dedicated  ourselves  in  the  war.  We  seek  to  realize 
the  principles  of  the  Charter  of  the  United  Na- 

tions— a  just  and  lasting  peace,  modei'ation  and 
mutual  respect  among  nations,  the  advancement  of 
the  well-being  of  mankind. 

Our  efforts  to  move  toward  this  goal  by  agree- 
ment among  nations  have  been  confronted  witli  a 
great  obstacle.  That  obstacle  is  the  inordinate 
ambition  of  the  Soviet  leaders,  which  is  based  on 
their  delusions  about  the  non-Communist  world. 

We  are  taking  measures  which  will  enable  us  to 
surmount  this  obstacle  and  move  on  toward  our 
objective.  This  is  the  meaning  of  our  efforts  to 
strengthen  the  free  world. 

Strengthening  Measures  To  Prevent  War 

I  have  said  before — and  it  cannot  be  said  too 
often — that  war  is  not  inevitable.  It  is  the  deter- 
mined purpose  of  this  country,  and  of  the  like- 
minded  nations  working  with  us,  to  prevent  war. 
We  are  building  our  strength  in  order  that  we  may 
eliminate  the  conditions  which  could  give  rise  to 
war,  and  we  are  on  the  threshold  of  a  new  period 
in  the  successful  forward-movement  of  this  effort. 
We  face  this  new  period  with  confidence,  but  we 
must  be  very  clear  in  our  minds  about  our  purposes 
in  the  times  that  lie  ahead. 

We  do  not  arm  for  purposes  of  conquest.  Our 
strength  is  a  shield,  whose  purpose  is  twofold. 

First,  our  strength  is  essential  to  a  progressive 
and  successful  resolution  of  the  difficulties  which 
today  beset  the  international  community. 

The  obverse  of  General  Marshall's  conclusion 
after  the  London  meeting  of  the  Council  of  For- 
eign Ministers  is  that  when  the  political  vacuum 
has  been  filled  by  the  restoration  of  a  healthy 
European  conmiunity,  greater  progi'ess  will  be 
possible  in  settling  differences  in  the  world. 
Strength  is  not  a  substitute  for  discussion  and 

As  the  leaders  of  the  Soviet  Union  come  to 
appreciate  that  their  analysis  of  the  world  situa- 
tion and  their  policies  flowing  from  that  analysis 
have  been  incori'ect,  the  possibility  for  reasonable 
settlements  of  matters  affecting  the  stability  and 
progress  of  the  international  community  will 

Until  the  Soviet  leaders  do  genuinely  accept  a 
"live  and  let  live"  philosophy,  then,  no  approach 
from  the  free  world,  however  imaginative,  and  no 
Trojan  dove  from  the  Communist  movement,  will 
help  to  resolve  our  mutual  problems. 

This  does  not  mean  that  discussion  should  not 
take  place  or  that  every  effort  should  not  be  made 


Dapartment  of  Slate  Bulletin 

to  settle  any  questions  which  are  possible  of 

It  is  our  policy  to  be,  as  General  Marshall  put 
it,  the  first  to  attend  at  international  conference 
tables  and  the  last  to  retire. 

We  shall  continue,  through  diplomatic  channels 
and  through  the  United  Nations,  to  keep  open 
every  possibility  for  the  adjustment  of  differences, 
and  we  look  forward  confidently  to  the  day  when 
the  gradual  process  of  accommodation  will  begin 
to  make  itself  felt. 

To  this  end,  we  shall  continue  to  give  unfaltering 
support  to  the  United  Nations.  In  addition  to  the 
constructive  work  it  is  now  doing,  the  United 
Nations  is  a  symbol  of  our  hopes  for  harmony 
among  nations. 

The  second  purpose  of  our  strength  is  to  enable 
us  to  carry  ahead  a  creative  relationship  with  the 
other  nations  of  the  free  world.  Our  traditions 
and  our  self-interest  direct  us  toward  the  great 
constructive  tasks  before  us  among  the  peoples  of 
the  free  world. 

Democracy  is  a  dynamic  idea  in  the  world. 
Many  millions  of  people  look  to  this  country  for 
leadership  in  applying  both  the  moral  and  the 
practical  idea  of  democracy  to  the  problems  which 
we  and  they  face.  It  is  our  responsibility  to  dem- 
onstrate the  unlimited  creative  possibilities  of  the 
democratic  process  for  "better  standards  of  life 
in  larger  freedom,"  in  the  language  of  the  United 
Nations  Charter. 

Community  Sense  Among  Free  Nations 

It  is  a  fact  of  considerable  importance,  although 
hardly  recognized,  that  much  of  what  the  free 
world  has  been  doing  to  build  its  strength  has 
been  in  itself  a  great  creative  effort.  The  means 
by  which  free  men  have  sought  to  strengthen  their 
defenses  have  led,  perhaps  to  some  degree  uncon- 
sciously, to  a  community  sense  among  free  nations. 
Both  the  North  Atlantic  community  and  the  com- 
munity of  the  American  states  are  institutions 
founded  on  pi'inciples  which  must  eventually  pre- 
vail in  a  wider  world. 

Unlike  the  alliances  of  a  former  day,  these 
associations  among  states  produce  a  community  of 
peoples  where  no  dominance  exists,  a  community 
which  is  based  on  generous  and  willing  coopera- 
tion and  on  the  primacy  of  individual  liberty. 
These  are  communities  in  which  rules  of  mutual 
aid  and  self-help  are  cardinal  and  in  which  the 
duty  and  responsibility  of  aiding  other  free  peo- 

Ju/y  3,  1950 

892500—50 3 

pies  to  achieve  their  own  development  in  their  own 
way  are  fully  recognized. 

Thus,  the  weaving  of  a  community  sense  among 
the  nations  who  have  joined  their  strength  in  these 
common  efforts  is  a  substantial  step  toward  the 
realization  of  a  world  order  based  on  consent  and 
dedicated  to  peace  and  progress.  It  has  accom- 
plished, in  a  great  area  of  the  world,  a  fuller  reali- 
zation of  the  principles  of  the  Charter  of  the 
United  Nations  since  it  has  advanced  international 
cooperation  to  maintain  the  peace,  to  advance 
human  rights,  to  raise  standards  of  living,  and  to 
promote  respect  for  the  principle  of  equal  rights 
and  self-determination  of  i^eoples. 

The  great  effort  in  which  we  are  engaged  to 
build  a  North  Atlantic  community  is  not  merely 
a  means.  It  is  in  itself  a  creative  act  of  historic 

It  is  often  true  in  history  that  men  acting  under 
immediate  compulsion  are  only  partly  aware  of 
the  great  consequences  of  what  they  have  set  in 
motion.  Measures  taken  to  suit  a  narrow  purpose, 
if  conceived  in  harmony  with  man's  moral  nature, 
may  leave  a  great  creative  legacy. 

The  barons  at  Runnymcde  were  seeking  relief 
from  the  oppressive  and  arbitraiy  actions  of  a 
despotic  king,  but  the  principles  they  enunciated, 
embodied  in  the  Magna  Carta,  laid  the  basis  for 
the  restraints  upon  the  state  which  are  funda- 
mental to  individual  liberty. 

The  complaints  of  the  American  colonists  about 
taxation,  which  might  conceivably  have  been 
settled  through  diplomatic  negotiation,  instead, 
gave  rise  to  that  enduring  statement  of  the  in- 
alienable rights  of  man,  the  Declaration  of 

It  is  in  the  nature  of  democracy  to  recognize 
that  the  means  we  choose  shape  the  ends  we 
achieve.  In  a  democracy,  there  are  no  final  ends, 
in  the  sense  of  a  Utopia. 

The  followers  of  Karl  Marx  endure  the  dictator- 
ship of  a  police  state  in  the  delusion  that  they  are 
ascending  to  a  classless  society.  But  a  democratic 
society  camiot  employ  means  which  belie  and 
indeed  destroy  the  possibility  of  achieving  its 
goals.  Democratic  society,  by  its  conduct  from 
day  to  day,  from  week  to  week,  and  from  year  to 
year,  is  creating  its  own  future. 

If  we  would  continue  to  move  toward  our  goal 
of  a  world  order  in  which  peace,  freedom,  and 
justice  may  be  secure,  the  means  we  choose  to 
{Continued  on  page  38) 



ty  Edward  A.  Jamison 

On  April  8, 1950,  in  the  Council  Chamber  of  the 
Organization  of  American  States  (Oas),  in  the 
Pan  American  Union  building  at  Washington,  the 
representatives  of  21  nations  of  the  Western  Hem- 
isphere took  part  in  an  event  of  profound  impor- 
tance to  peace  and  security  among  their  own 
governments  and  of  significance  to  the  peace  of 
the  world.  Meeting  as  representatives  of  govern- 
ments of  sovereign  equality,  these  members  of  the 
Council  of  the  Oas,  who  were  acting  provisionally 
as  Organ  of  Consultation  under  the  Rio  treaty, 
brought  to  a  successful  conclusion  (without  a  dis- 
senting vote  in  6  hours  of  continuous  voting  and 
debate)  the  second  and  third  successful  applica- 
tions of  that  inter- American  pact  to  controversies 
between  American  states. 

Here  was  a  convincing  demonstration  of  inter- 
American  solidarity  in  action.  For  over  3  months, 
the  consultative  body  of  the  Oas  dealt  with  charges, 
by  one  or  another  government  of  the  Caribbean 
area,  that  other  American  governments  or  their 
officials  had  tolerated  or  even  openly  supported 
activities  directed  from  abroad  against  their  own 
existence.  During  that  period,  an  Investigating 
Committee  of  five  members  of  the  Organ  of  Con- 
sultation carried  out  an  intensive  and  thorough 
examination  within  all  the  countries  directly  con- 
cerned of  the  factual  bases  of  these  charges  and 
produced  an  objective  and  frank  report. 

The  report,  Which  has  been  made  public,  was 
the  basis  upon  which  the  Organ  of  Consultation 
on  April  8  took  firm  and  constructive  action.  It 
approved  resolutions  which  (1)  made  clear  the 
culpability  of  certain  of  the  accused  governments; 
(2)  called  upon  these  governments  to  take  st«ps 

to  remove  the  causes  of  the  difficulties  and  to  restore 
their  relations  to  a  normal,  friendly  basis;  (3)  in- 
dicated that  repetition  of  the  disturbing  events 
might  well  require  more  extreme  action  under  the 
Eio  treaty ;  and  (4)  laid  the  groundwork  for  other 
general  action  to  eliminate  the  causes  of  underly- 
ing difficulties.^ 

Controlling  International  Strife  Among  Countries 

The  problems  that  revolutionary  irregularities 
create  are  not  new  in  the  general  area  of  the  Car- 
ibbean, elsewhere  in  the  Americas,  or,  for  that 
matter,  in  the  world.  For  generations,  and  fre- 
quently even  in  recent  years,  armed  groups  and 
individual  adventurers  have  sought  by  various 
means  to  overthrow  by  force  one  or  another  of  the 
established  governments  of  the  area.  Nor  is  such 
action  necessarily  a  strange  phenomenon  among 
countries  that  had  originally  achieved  indepen- 
dence by  revolutions,  at  times  with  the  active 
assistance  of  other  governments  and  peoples. 
However,  the  growth  of  concepts  of  international 
order  and  the  development  of  procedures  for 
making  them  efi'ective  have  produced  an  increas- 
ing recognition  of  the  fundamental  fact  that  gov- 
eriunents  have  a  responsibility,  if  only  as  an 
aspect  of  maintaining  their  own  independence,  of 
preventing  irregular  activities  which  they  can 
control  and  which  have  the  purpose  of  starting  or 
promoting  civil  strife  in  neighboring  countries. 

'  For  full  texts  of  the  resolutions  approved  on  Apr.  8, 
1950,  see  Bulletin  of  May  15,  1950,  p.  771.  Copies  of  the 
resolutions,  which  have  been  issued  in  English,  Spanish, 
French,  and  Portuguese,  may  also  be  obtained  from  the 
Pan  American  Union,  Washington,  D.C. 


Department  of  Sfafe  Bulletin 

This  purpose  was  the  meaning  of  the  action  that 
the  American  Republics  took  in  1928  at  Habana 
when  manj'  of  them  signed  a  treaty  proscribing 
sucli  activities.  Such,  also,  has  been  one  of  the  pur- 
poses, since  that  time,  of  numerous  other  inter- 
American  actions. 

In  1947,  the  American  states  drew  up  the  Inter- 
American  Treaty  of  Reciprocal  Assistance,  "the 
Rio  Treaty,"  which  provides  inter-American  ma- 
chinery for  dealing  not  only  with  armed  attack 
or  serious  thieats  from  outside  the  hemisphere  and 
with  open  conflicts  between  American  states  but 
also  with  any  other  fact  or  situation  that  ''might 
endanger  the  peace  of  America"  and  "that  affects 
the  inviolability  or  the  integrity  of  the  territory  or 
the  sovereignty  or  the  political  independence  of 
any  American  State."  The  quoted  language  is 
from  article  6  of  that  treaty. 

Applying  the  Rio  Treaty 

The  Rio  treaty  became  effective  in  December 
1948  when  the  necessary  ratifications  by  14  gov- 
ernments were  completed.  Shortly  thereafter, 
Costa  Rica  invoked  the  treaty,  and  its  procedures 
were  applied  to  a  dispute  between  that  country 
and  Nicaragua,  a  dispute  which  was  settled  to  the 
satisfaction  of  both  parties  by  their  concluding, 
on  February  21,  1949,  and  subsequently  ratifying, 
a  treaty  of  friendship.  This  settlement  marked 
the  successful  culmination  of  the  first  application 
of  the  Rio  treaty.^ 

On  January  3,  1950,  an  American  state  again 
invoked  that  treaty.  The  Government  of  Haiti, 
through  its  representative  on  the  Council  of  the 
Oas,  Ambassador  Joseph  L.  Dejean,  on  that  date, 
requested  the  Chairman  of  the  Council,  Ambas- 
sador Luis  Quintanilla  of  Mexico,  to  p)lace  before 
that  body  charges  by  Haiti  that  the  Government 
of  the  Dominican  Republic  had  committed  acts  of 
intervention  which  affected  the  territorial  inviola- 
bility, the  sovereignty,  and  the  political  independ- 
ence of  Haiti.  The  charges  also  included  the 
accusation  that  officials  of  the  Dominican  Govern- 
ment had  aided  in  the  preparation  of  a  conspiracy 
in  which  an  armed  band  was  to  overthrow  the 
established  Government  of  Haiti.  This  armed 
band,  according  to  the  charge,  was  proceeding 
from  the  Dominican  Republic  under  the  leadership 
of  a  former  Haitian  army  officer.  Colonel  Roland, 

*  For  an  account  of  the  situation  by  W.  Tapley  Bennett, 
Jr.,  see  Bxjlletin  of  June  5,  1949,  p.  707. 

who  had  been  in  exile  in  that  country  for  some  time 
and  whose  activities  had  been  the  basis  of  earlier 
action  by  Haiti  under  inter-American  procedures 
for  settling  disputes.  Although  Haitian  officials 
had  thwarted  the  conspiracy,  Haiti  held  that  the 
situation  Mas  sufficiently  serious  to  warrant  action 
under  article  G  of  the  Rio  treaty. 

Chairman  Quintanilla  lost  no  time  in  calling  a 
meeting  to  consider  the  Haitian  invocation  of  the 
treaty.  Wlien  the  representatives  gathered  on 
January  6,  the  Haitian  Ambassador,  who  had  only 
recently  been  welcomed  as  the  new  representative 
of  his  Govermnent  on  the  Council,  expounded  fur- 
ther the  bases  of  the  Haitian  complaint. 

Ambassador  Joaquin  Salazar  of  the  Dominican 
Republic  replied  by  reading  a  formal  note  in 
which,  in  the  name  of  his  Government,  he  not  only 
denied  categorically  the  Haitian  charges  but  also 
called  upon  the  Council  to  apply  the  terms  of  the 
Rio  treaty  to  the  situation  which  the  Dominican 
Republic  claimed  had  developed  as  a  result  of 
failure  of  several  other  govenunents  of  the  Carib- 
bean over  a  period  of  years  to  carry  out  their 
international  obligations.  This  situation,  he  in- 
dicated, had  endangered  and  continued  to  endan- 
ger the  sovereignty  of  his  government. 

Debate  on  the  Haitian  Charges 

The  debate  which  ensued  demonstrated  that 
most  of  the  Council  members  clearly  felt  that  valid 
grounds  existed  for  putting  the  treaty  procedures 
into  effect.  Whether  this  action  should  be  taken 
with  respect  to  the  specific  charges  presented  by 
Haiti  alone,  or  whether  the  more  general  situation 
presented  by  the  Dominican  Government  (in 
which  other  countries  figured)  should  be  dealt, 
with  as  well  was  not,  at  first,  clear.  Actually,  the 
Council  produced  no  definitive  decision  on  the 
issue  at  the  January  6  meeting,  but  the  importance 
of  the  charges  that  Ambassador  Salazar  brought 
out  was  recognized  by  reference  to  them  in  the 
preamble  of  the  resolution  finally  approved. 

The  resolution  set  for  the  precise  decisions,  how- 
ever, on  applying  the  treaty  and  declared  the 
need  for  a  full  investigation  of  the  facts.  The 
Council  followed  the  procedure  for  which  an  im- 
portant precedent  had  been  set  in  the  Costa  Rica- 
Nicaragua  case  of  the  previous  year.  In  the  first 
place,  the  Council  convoked  the  Organ  of  Consul- 
tation and  called  a  meeting  of  Ministers  of  Foreign 
Affairs,  with  time  and  place  of  the  meeting  not 

July  3,   1950 


In  conformity  witli  article  12  of  the  treaty,  the 
Council  itself  may  act  provisionally  as  Organ  of 
Consultation  until  the  meeting  of  Foreign  Minis- 
ters takes  place.  The  significant  precedent  of  the 
Costa  Rica-Xicaragua  case  showed,  however,  that 
acting  provisionally  as  consultative  organ  without 
the  actual  holding  of  the  Foreign  Ministers  meet- 
ing, the  Council  may  reach  a  satisfactory  resolu- 
tion of  the  problem. 

Appointment  of  Investigating  Committee 

The  second  important  decision  embodied  in 
the  resolution  of  January  6  was  that  the  Council 
should  appoint  an  Investigating  Committee  to  de- 
termine the  facts  upon  which  subsequent  decisions 
of  the  consultative  organ  would  be  based.  The 
view  that  an  impartial  baring  of  the  facts  of  the 
situation  would  in  itself  have  a  salutary  effect  upon 
the  uneasiness  which  had  so  long  characterized 
relations  among  governments  in  the  area  had  con- 
siderable basis.  Whatever  delay  might  be  entailed 
was  felt  to  be  expendable,  in  this  instance,  because, 
on  the  whole,  the  charges  did  not  point  to  a  threat 
or  international  dereliction  of  such  imminence  that 
a  thorough  search  for  the  truth  could  be  dispensed 
with.  Many  of  the  charges  dealt  with  activities 
which,  however  important  in  producing  a  state 
of  tension,  were  incidents  of  the  past. 

Shortly  after  the  meeting  of  January  6,  Chair- 
man Quintanilla  announced  the  appointment  of 
the  representatives  on  the  Council  to  the  Investi- 
gating Committee.  These  were  Ambassadors 
Jose  Mora  of  Uruguay,  Eduards  Zuleta  Angel  of 
Colombia,  Guillermo  Gutierrez  of  Bolivia,  and 
Paul  C.  Daniels  of  the  United  States,  and  Minister 
Alfonso  Moscoso  of  Ecuador.  At  an  organiza- 
tional meeting,  held  the  following  day.  Ambassa- 
dor Mora  was  chosen  chairman  of  the  group. 

The  resolution  approved  by  the  Council  on 
January  6  stipulated  that  the  Bases  de  Actuacion — 
or  terms  of  reference — of  the  Investigating  Com- 
mittee would  be  described  in  detail  in  a  subsequent 
meeting  of  the  Council,  acting  provisionally  as 
Organ  of  Consultation.  Accordingly,  a  second 
meeting  was  held  on  January  11,  in  which  it  took 
significant  actions  and  set  important  precedents. 

Decision  To  Discuss  Dominican  Case  Separately 

Perhaps,  the  most  significant  decision  of  this 
meeting  was  that  the  Organ  of  Consultation  should 
take  up  the  Haitian  and  Dominican  petitions  sep- 
arately— dealing  with  the  note  presented  by  Haiti 

as  "Case  A"  and  with  that  presented  by  the  Do- 
minican Republic  as  "Case  B."  In  a  sense,  the 
necessities  of  the  voting  procedures  of  the  Rio 
treaty,  which  provides  that  "the  parties  directly 
interested"  shall  be  excluded  from  voting  when 
the  Organ  of  Consultation  is  dealing  with  a  situa- 
tion or  dispute  between  American  states,  dictated 
this  decision.  The  Haitian  petition  was  based  on 
charges  directed  against  the  Dominican  Govern- 
ment, while  the  note  of  the  latter  Government  re- 
ferred to  a  more  general  situation,  covering  a 
considerably  longer  period,  in  which  several  other 
goveriunents  w  ere  charged  with  international  dere- 
liction. On  the  basis  of  agreement  on  the  distinc- 
tion between  the  two  cases,  the  Council  considered 
Haiti  and  the  Dominican  Republic  to  be  the 
directly  interested  parties  in  "Case  A";  and  it  also 
approved  the  document  setting  forth  the  functions, 
powers,  and  attributes  of  the  Investigating  Com- 
mittee for  dealing  with  that  case. 

The  Council  generally  assumed  that  the  Investi- 
gating Committee  would  examine  the  facts  of  both 
cases.  A  difficult  problem,  however,  arose  when 
the  Council  attempted  to  determine,  for  voting 
purposes,  which  governments  were  "directly  in- 
terested" in  "Case  B."  Although  the  Dominican 
note  had  mentioned  several  governments,  Ambas- 
sador Salazar  indicated  early  in  the  meeting  that 
his  Government  regarded  only  Haiti,  Cuba,  and 
Guatemala  as  parties  to  an  existing  dispute  or  sit- 
uation. Since  the  immediate  issue  concerned  the 
voting  privilege  and  since  Guatemala,  because  of 
not  having  ratified  the  Rio  treaty,  held  no  voting 
right,  the  problem  was  reduced  to  determining 
whether  Cuba  and  Haiti  were,  in  fact,  directly 
interested  parties  to  "Case  B."  Considerable  de- 
bate followed  on  this  issue  with  general  insistence 
that  a  government  may  become  "directly  inter- 
ested" either  through  accusing  others  or  by  being 
itself  accused  of  an  international  wrongdoing. 
This  determination  the  Council  decided  did  not 
in  itself  imply  culpability  on  the  part  of  the  ac- 
cused. Finally,  the  necessary  two-thirds  majority 
concluded  that  the  Dominican  Republic,  Haiti,  and 
Cuba  were  the  Governments,  among  those  which 
had  ratified  the  treaty,  which  were  "directly  in- 
terested" in  "Case  B." 

The  Council,  thus,  ajiproved  the  Investigating 
Committee's  Bases  de  Actuacion  as  applicable  to 
both  cases.  This  document  described  in  detail  the 
powers  and  functions  of  the  Committee,  which  had 
been  charged,  in  general  terms,  in  the  resolution  of 


Department  of  State   Bulletin 

January  6  Mitli  conducting  an  "on  the  spot  investi- 
gation of  the  facts  and  their  antecedents."  Its 
terms  authorized  the  committee  ".  .  .  to  hear  wit- 
nesses, to  receive  depositions  and  to  avail  itself 
of  any  other  sources  of"  information"  which  it 
miglit  consider  pertinent  to  its  task.  Furthermore, 
the  terms  instructed  it  to  prepare  a  report  or  re- 
ports containing  a  recital  of  the  facts,  pertinent 
documentary  material,  and  its  conclusions  as  a 
result  of  the  investigation.  Meetings  of  the  Com- 
mittee and  the  transmittal  of  its  report  to  the 
Organ  of  Consultation  were  to  be  in  private  session, 
but  the  Council  decided  that  the  consultative  body 
would  decide  on  the  documents  to  be  made  public 
as  well  as  other  action  that  might  be  considered 

The  Investigating  Committee  planned  to  visit 
the  countries  which  figured  in  the  charges  of  cur- 
rent importance;  but  since  it  could  accomplish 
considerable  preparatory  work  at  Washington, 
the  Committee  immediately  initiated  a  series  of 
meetings  in  which  it  heard  the  representatives  of 
governments,  including  the  Foreign  Minister  of 
Haiti,  high  Foreign  Office  officials  of  the  Domini- 
can Republic,  and  others.  In  this  manner,  the 
Conunittee  prepared  the  way  for  a  thorough  and 
intensive  examination  in  the  countries  concerned 
of  the  basis  for  charges  which  were  both  specific 
and  complex. 

Investigating  Committee's  Examination 

This  examination,  which  began  in  Haiti,  lasted 
for  more  than  3  weeks,  during  which  time  the 
Committee  also  visited  the  Dominican  Republic, 
Cuba,  Guatemala,  and,  briefly,  Mexico.  The  ac- 
tivities of  the  Committee,  in  this  period,  included 
interviews  both  of  a  formal  and  informal  nature 
with  the  Presidents  and  high  officials  of  each  of 
the  directly  interested  governments,  hearings  of 
the  testimony  of  numerous  witnesses  who  had 
either  participated  in  or  were  acquainted  with 
details  of  revolutionary  irregularities,  visits  by 
members  of  the  Committee  to  areas  in  which 
activities  were  either  alleged  to  have  been  carried 
on  or  which  had  significance  for  some  other  reason, 
to  say  nothing  of  constant  reviewing  and  ordering 
of  data  which  were  acquired.  The  Committee  left 
no  doubt  that  it  was  determined  to  make  its  inves- 
tigation as  thorough  as  it  was  impartial.  The 
work  of  the  Committee,  particularly  in  this  phase, 
together  with  the  assistance  given  by  all  the  gov- 

ernments involved,  offers  an  encouraging  example 
of  the  effective  implementation  of  procedures  for 
peaceful  settlement  undertaken  by  a  regional  col- 
lective security  body. 

When  the  Committee  returned  to  Washington,  it 
undertook  immediately  the  task  of  winding  up  the 
investigation  and  analyzing  the  extensive  data 
compiled  regarding  the  facts  of  the  cases.  Fur- 
thermore, the  Committee  was  obligated  to  point 
out  what  it  believed  to  be  the  basic  factors  con- 
tributing to  Caribbean  irregularities  and  offer  its 
conclusions  regarding  steps  which  could  eliminate 
these  factors  and  thereby  avoid  repetition  of  the 
difficulties.  It  gave  considerable  attention  to  pre- 
paring general  considerations  and  drafting  5  reso- 
lutions, covering  all  essential  aspects  of  the 
problem,  which  the  Organ  of  Consultation  may 
propose  for  action. 

The  Council  of  the  Organization,  acting  pro- 
visionally as  Organ  of  Consultation,  received  the 
Committee's  73-page  report  at  a  special  meeting  in 
the  Council  Chamber  on  March  13,  1950.^  The 
Council  had  decided,  in  its  previous  meeting,  that 
the  session  in  which  it  received  the  report  would 
begin  as  a  closed  meeting.  No  objection  was  ex- 
pressed though  a  suggestion  was  made  that  the 
doors  be  opened  immediately  to  the  press  and 

The  report  itself  was  withheld  from  publication 
for  6  days  in  order  that  the  representatives  of  dis- 
tant governments  might  have  time  to  forward  it 
to  their  Foreign  Offices.  The  manner  in  which 
the  contents  of  the  document  appear  to  have  been 
kept  in  confidence  until  the  date  of  publication, 
which  was  March  20,  1950,  is  a  striking  example 
of  the  cooperative  spirit  which  all  the  members  of 
the  Council  showed  throughout  the  entire  period. 

Wlien  the  consultative  body  released  the  con- 
tents of  the  document,  the  governments  and  the 
public  quickly  appreciated  the  work  the  Commit- 
tee had  accomplished.  This  report  was  no  white- 
wash, nor  was  it,  in  any  sense,  a  surrender  to  dip- 
lomatic camouflage.  Rather,  it  was  a  straight- 
forward, clear-cut  analysis  of  the  factual  basis  of 
charges  made  by  two  governments,  with  conclu- 
sions which  fixed  responsibility  and  proposed  steps 

'  The  full  test  of  the  report  of  the  Investigating  Com- 
mittee has  been  Issued  in  English,  Spanish,  and  French  by 
the  Pan  American  Union,  Washington,  D.C.,  as  Docu- 
ment C-I-67.  Copies  may  be  obtained  by  writing  to  the 
Pan  American  Union. 

July  3,   1950 


for  a  solution  of  the  immediate  and  underlying 
difficulties.  On  March  22,  Secretary  Acheson  ex- 
pressed the  full  support  of  the  United  States  for 
the  Committee's  conclusions  and  recommendations 
and  i^raised  the  Committee  for  the  thorougluiiess 
and  objectirlty  of  its  work.* 

Because  oi  its  sigiiiGcance  in  the  development  of 
the  inter-American  peace-keeping  machinery,  as 
well  as  its  importance  in  setting  forth  the  basic 
facts  and  considerations  in  the  cases  dealt  with 
the  report  itself  merits  careful  attention  as  a  his- 
toric document.  The  following  presents  a  sum- 
mary of  certain  of  its  highlights. 

Summary  of  Highlights  in  the  Report 

The  Committee  examined,  first,  "Case  A,"  re- 
sulting from  the  Haitian  petition  of  January  3. 
It  found  that  several  of  the  charges  by  Haiti 
against  the  Dominican  Republic  had  considerable 
basis  in  fact.  Of  these  charges  several  concerned 
the  activities  of  two  Haitian  exiles  who  were  said 
to  have  engaged  in  attacks  upon  the  Haitian  Gov- 
ernment by  radio  from  Ciudad  Trujillo.  The 
Committee  held  that  failure  of  the  Dominican 
Government  to  prevent  incitement  of  this  kind  was 
in  violation  of  the  Joint  Declaration  that  each  gov- 
ernment had  signed  on  June  9, 1949,  in  which  each 
had  indicated  that  it  would  not  tolerate  activities 
in  its  territory  that  had  as  their  object  the  disturb- 
ance of  the  internal  peace  of  the  neighboring 
country.  Recognizing  the  particular  importance 
of  this  Joint  Declaration,  as  well  as  the  subsequent 
reaffirmation  of  it  by  the  Dominican  Government, 
the  Committee  concluded  that  the  Dominican  Gov- 
ermnent  should  have  prevented  certain  of  the 
activities  which  were  found  to  have  taken  place. 

Of  more  immediate  concern,  however,  was  the 
Haitian  charge  that  the  abortive  plot  of  Novem- 
ber-December 1949  (which  Haitian  police  had 
uncovered  and  suppressed)  had  involved,  among 
other  things,  contact  between  conspirators  at 
Port-au-Prince  and  the  Haitian  exile  at  Ciudad 
Trujillo,  ex-Colonel  Astrel  Roland,  and  that  Do- 
minican citizens  and  certain  Government  officials 
had  supported  the  preparations  for  the  conspir- 
acy. In  this  charge  the  Committee  found  much 
truth.  Not  only  did  it  establish  the  fact  that  a 
conspiracy  existed  between  persons  in  Haiti  and 
Roland  for  the  purpose  of  overthrowing  the  Presi- 
dent of  Haiti,  but  it  also  found  that  certain  Do- 

*  Bulletin  of  Apr.  3,  1950,  p.  523. 

minican  officials  aided  this  action,  which  a 
Dominican  diplomatic  officer  at  Port-au-Prince 
had  transmitted  $2,000  to  the  conspirators,  and 
that  a  Dominican  citizen  and  former  high  official 
".  .  .  played  a  principal  part  in  said  cooperation." 

In  dealing  with  the  petition  of  the  Dominican 
Republic,  "Case  B,"  the  Committee  indicated  that 
the  complexity  and  scope  of  the  complaints  made 
difficult  an  analysis  of  each  in  detail.  After  it 
had  dealt  with  certain  examples  of  events,  in- 
dicative of  the  "state  of  unrest"  of  previous  years, 
which  illustrated  that  no  one  government  had  felt 
exclusively  the  problem  of  revolutionary  activity, 
it  did  analyze  three  of  the  situations  which  formed 
a  main  basis  of  Dominican  charges  and  the  relation 
of  those  to  the  "present  situation."  It  found  that 
two  of  these,  the  Cayo  Confites  expedition  of  1947 
(which  Cuba  eventually  thwarted)  and  the  attack 
at  Luperon  in  June  1949  (in  which  one  plane 
actually  made  a  water  landing  in  Dominican  ter- 
ritorial waters)  had  gained  considerable  headway 
as  a  result  of  toleration  and,  in  some  cases,  open 
support  by  officials  of  two  Governments,  Cuba  in 
the  former  case  and  Guatemala  in  the  latter. 

A  third  Dominican  accusation  was  that  fresh 
preparations  for  warlike  action  against  the  Domin- 
ican Government  were  undertaken,  with  aid  from 
the  Cuban  Red  Cross,  late  in  1949  in  Cuba.  The 
accusation  also  charged  that  the  Cuban  Red  Cross 
had  engaged  in  constructing  an  airfield  in  Cuba 
which  was  to  be  used  as  a  starting  point  for  an 
attack  on  the  Dominican  Republic.  In  this  case, 
the  Committee  found  that,  although  certain  un- 
usual circumstances  surrounded  the  control  of  and 
activities  carried  on  in  the  name  of  the  Cuban  or- 
ganization, the  proposed  airfield  clearly  could  not 
be  used  to  facilitate  a  military  invasion  of  the  Do- 
minican Republic. 

Although  the  Committee  found  that  the  irregu- 
larities in  connection  with  the  above  specific  Do- 
minican complaints  were  matters  of  the  past,  it 
stated  that  certain  of  the  circumstances  which 
had  contributed  to  them  continued  to  exist  and  that 
these  were  giving  rise  to  new  factors  "indicative  of 
an  abnormal  situation  in  the  Caribbean  zone." 
Specifically,  it  found  (1)  that  various  groups  of 
exiles  ".  .  .  not  only  persist  in  their  struggle,  but 
also  seek  surreptitious  support  from  govern- 
ments"; (2)  that  some  governmental  authorities 
were  indicating  a  willingness  to  keep  these  exile 
groups;  (3)  that  certain  agents  of  revolutionary 
movements  were  occupying  and  using  official  posi- 


Departmenf  of  State  Bulletin 

tions  for  their  revolutionary  purposes;  (4)  that 
collections  of  war  materials  used  in  earlier  revolu- 
tionary attempts  and  a  ''professionally  subversive 
element  in  certain  sections"  which  were  insuffi- 
ciently controlled  still  existed. 

All  of  these  facts  led  to  the  conclusion  that  ele- 
ments remained  which  were  likely  to  create  war- 
like situations. 

After  it  had  dealt  with  the  immediate  factual 
situation  in  each  case,  the  Investigating  Commit- 
tee set  forth  a  series  of  basic  factors  which,  it  be- 
lieved, had  contributed  to  Caribbean  irregularities 
and  presented  conclusions  on  steps  which  the  coun- 
tries concerned  might  take  to  eliminate  such  fac- 
tors and  avoid  repetition  of  the  irregularities. 

Among  those  factors  upon  which  the  Committee 
recommended  sj^ecific  action  to  the  Organ  of  Con- 
sultation were : 

1.  The  limitations  of  the  1928  Convention  on 
Duties  and  Eights  of  States  in  the  Event  of  Civil 
Strife.^  This  treaty,  the  inter-American  instru- 
ment which  is  specific  and  detailed  regarding  the 
duties  of  states  in  situations  such  as  those  which 
had  troubled  the  Caribbean  area,  required  review 
in  order  to  determine  whether  it  should  be  made 
more  adequate  and  up  to  date  in  fixing  the  obliga- 
tions of  states  in  preventing  ".  .  .  the  prepara- 
tion and  carrying  out  of  activities  which  have  the 
purpose  of  fomenting  civil  strife  in  other  coun- 
tries." Although  some  members  made  suggestions 
for  strengthening  it,  the  Investigating  Commit- 
tee's primary  recommendation  was  that  competent 
inter-American  organs  should  study  this  matter 
thoroughly  to  determine  what  effective  measures 
they  could  work  out  on  the  matter. 

2.  The  problem  of  political  asylees,  refugees, 
and  exiles.  In  this  connection,  the  Committee 
noted  explicitly  the  problems  created  by  the  exist- 
ence of  an  increased  number  of  political  exiles 
in  the  Caribbean  area,  some  with  sincere  and 
idealistic  purj^oses  and  others  whose  motives  were 
adventurous  or  mercenary.  This  problem  is,  in- 
deed, implicit  in  almost  every  phase  of  the  Com- 
mittee's report.  Here,  again,  the  Committee 
proposed  that  competent  organs  of  the  Oas  make 
a  careful  study  to  determine  whether  further  in- 
ter-American action  might  be  practical  or 

3.  The  lack  of  adequate  measures  to  give  effec- 
tiveness to  the  principle  of  representative  democ- 

July  3,  T950 

racy,  particularly  as  reflected  in  the  free  electoral 
process.  The  relevance  of  this  fundamental  prob- 
lem, although  not  set  forth  in  explicit  terms,  was 
implicit  in  many  phases  of  the  situation  which  the 
Committee  had  examined.  The  difficulty  of  find- 
ing means  within  a  framework  in  which  the  non- 
intervention commitment  is  precise  and  specific, 
for  promoting  adequate  respect  for  representative 
democracy  is  quite  clear,  but  the  proposal  that  the 
matter  be  subjected  to  careful  study  underlined 
the  need  for  seeking  such  means. 

One  aspect  of  the  relation  of  the  principle  of 
representative  democracy  to  inter-American  com- 
mitments was,  however,  thought  worthy  of  clari- 
fication :  the  Committee  proposed  that  the  Organ 
of  Consultation  declare  in  precise  terms  that,  what- 
ever might  be  the  need  for  giving  representative 
democracy  more  effectiveness,  it  could  find  no 
justification  for  asserting  that  the  promotion  of 
that  principle  authorizes  a  government  or  gov- 
ernments to  violate  international  commitments 
regarding  nonintervention. 

4.  The  need  for  some  means  to  assure  fulfillment 
of  the  recommendations  which  the  Organ  of  Con- 
sultation might  make  with  regard  to  the  problems 
presented  to  it.  The  establishment  of  a  committee 
with  adequate  powers  to  observe  compliance  with 
whatever  steps  the  Organ  of  Consultation  might 
agree  upon  was,  therefore,  proposed. 

On  the  basis  of  the  facts  presented,  the  conclu- 
sions reached  on  the  Haitian  and  Dominican  com- 
plaints, and  these  general  considerations,  the  In- 
vestigating Committee  prepared  drafts  of  resolu- 
tions, based  upon  the  consultative  organ's  drafts, 
which,  in  effect,  summarized  the  Committee's  con- 
clusions regarding  the  factual  situation  in  each 
case  and  the  steps  which  might  be  taken  to  correct 
them  as  well  as  to  deal  with  the  general  situation. 
These,  together  with  certain  additional  proposals 
on  more  general  questions,  were  the  matters  on 
which  the  Organ  of  Consultation  based  its  action 
of  April  8,  referred  to  above. 

At  the  meeting  on  March  13,  the  consultative 
organ  agreed  that  it  would  give  approximately  3 
weeks  for  governments  to  examine  the  Investigat- 
ing Committee's  report  and  formulate  their  views 
on  its  recommendations. 

The  consultative  organ  began  its  consideration 
on  April  3.  In  this  meeting  and  in  others  on  the 
two  following  days,  it  heard  the  points  of  view  of 
various  governments,  including  those  most  directly 
involved,  and,  during  this  time,  members  presented 


various  amendments  to  the  Investigating  Commit- 
tee's draft  resolutions.  The  first  of  these  meet- 
ings took  on  added  significance  since  Foreign  Min- 
isters Ernesto  Dihigo  of  Cuba,  Ismael  Gonzalez 
Arevalo  of  Guatemala,  and  Vilfort  Beauvoir  of 
Haiti  were  present. 

The  consultative  organ's  action  culminated  these 
preparatory  meetings  and  also  concluded  con- 
sideration on  the  two  cases. 

With  regard  to  that  case  in  which  Haiti  was  the 
petitioner,  the  resolution  of  April  8  indicates  that 
irregularities  for  which  the  Dominican  Govern- 
ment had  responsibility  were  contrary  to  inter- 
American  principles  and  that,  although  the  danger 
to  peace  which  they  represented  had  been  dis- 
pelled, their  repetition  would  call  for  further 
action  under  the  Rio  treaty.  The  resolution  notes, 
however,  that  the  repeal  of  war  powers  which 
President  Trujillo  had  obtained  in  December 
1949 — a  grant  of  special  power  to  declare  war 
which  had  figured  in  the  Haitian  petition  and  on 
which  Cuba  also  had  requested  action  by  the  Organ 
of  Consultation — together  with  Dominican  legis- 
lation to  prevent  subversive  activities  in  its  terri- 
tory, demonstrated  the  intention  of  that  Govern- 
ment to  maintain  peace  and  prevent  events  of  the 
kind  which  had  been  the  basis  of  the  Haitian 

Nevertheless,  the  resolution  formally  requests 
the  Dominican  Government  to  "take  immediate 
and  effective  measures  to  prevent  government  offi- 
cials from  tolerating,  instigating,  encouraging, 
aiding  or  fomenting  subversive  and  seditious 
movements  against  other  governments"  and  to 
comply  strictly  with  the  Joint  Declaration  of  June 
9,  observance  of  which  was  held  to  be  equally  the 
responsibility  of  Haiti.  Furthermore,  the  con- 
sultative organ  pointed  out  to  both  governments 
certain  means  for  strengthening  their  relations. 
It  requested  both  to  make  every  effort,  within 
limits  of  constitutional  authority,  to  avoid  sys- 
tematic and  hostile  propaganda  against  each  other 
or  other  American  governments. 

The  resolution  dealing  with  the  case  emanating 
from  the  Dominican  complaint  contains  a  clear 
indication  that  revolutionary  irregularities  had 
been  directed  against  the  Dominican  Republic  in 
Cuba  in  1947  and  in  Guatemala  in  1949.  Further- 
more, the  resolution  establishes  the  fact  that  offi- 
cials of  those  governments  had  not  only  expressed 
their  sympathy  with  these  movements  but  also  had, 
in  some  cases,  lent  them  aid.    Certain  of  the  facts 

determined  were  held  to  be  contrary  to  basic  inter- 
American  norms,  and  the  resolution  indicates  that 
the  irregularities,  if  repeated,  will  call  for  further 
action  under  the  Rio  treaty.  In  this  case,  the  reso- 
lution notes  that  declarations  "formulated  by  the 
Chief  Executives  of  Cuba  and  Guatemala,  to  which 
reference  is  made  in  the  Report  of  the  Committee, 
constitute  a  guaranty  against  future  recurrence 
of  acts  of  this  kind." 

The  resolution  formally  requests  the  Govern- 
ments of  Cuba  and  Guatemala,  however,  to  take 
adequate  measures  to  prevent  the  existence  in 
their  territories  of  armed  groups  conspiring 
against  other  countries  and  to  control  war  materi- 
als of  such  groups  as  well  as  any  illegal  traffic  in 
arms.  Favorable  action  on  the  resolution  brought 
the  withdrawal  of  several  more  drastic  proposals 
for  change.  As  a  result  of  an  amendment  to  this 
resolution,  the  responsibility  of  the  Dominican 
Government  for  action  contrary  to  inter- American 
harmony  was  declared,  and  that  Government  was 
also  called  upon  to  take  adequate  measures  to  in- 
sure absolute  respect  for  the  principle  of  non- 
intervention. Subsequent  portions  of  the  resolu- 
tion (1)  make  a  request,  similar  to  that  described 
above,  regarding  hostile  propaganda  of  all  four 
directly  interested  governments;  (2)  call  upon 
Cuba  and  the  Dominican  Republic  to  settle  speed- 
ily an  outstanding  controversy;  and  (3)  reaffirm 
the  14  conclusions  approved  by  the  Inter-Amer- 
ican Peace  Committee  on  September  14, 1949,  that 
contained  a  general  restatement  of  existing  prin- 
ciples pertinent  to  the  international  difficulties 
among  Caribbean  countries. 

As  a  means  of  insuring  effective  fulfillment  of 
steps  that  the  Organ  of  Consultation  agreed  upon, 
the  Investigating  Committee  recommended  the 
establishmenc  of  a  committee  with  authority  to  re- 
quest and  receive  pertinent  information  and  to 
promote,  if  necessary,  a  new  meeting  of  the  con- 
sultative organ  itself.  This  proposal,  involving 
significant  precedent  for  future  action,  caused  a 
degree  of  uneasiness  on  the  part  of  certain  repre- 
sentatives who  feared  that  it  might  impinge,  in 
some  way,  on  the  principle  of  nonintervention. 
Mexico  proposed  certain  amendments  that  tem- 
pered such  apprehensions,  and  the  consultative 
organ  approved  the  creation  of  a  continuing  com- 
mittee, provisional  in  character. 

This  committee,  to  which  Chairman  Quintanilla 
appointed  the  five  members  who  had  served  on  the 
Investigating  Committee,  is  to  inform  itself  of  the 


Deparfmenf  of  State  Bulletin 

manner  in  which  the  two  resohitions  are  carried  out 
and  to  report  to  all  the  American  governments 
within  3  months  after  April  8,  and  again  when  its 
work  has  been  completed.  The  committee,  which 
has  been  installed,  has  taken  the  name  "Special 
Committee  for  the  Caribbean"  and  is  under  the 
chairmanship  of  Ambassador  Mora  of  Uruguay. 
The  consultative  organ  gave  unanimous  approval 
in  the  April  8  meeting  to  the  Investigating 
Committee's  declaration  that  the  principles  of  rep- 
resentative democracy,  of  suffrage,  and  of  partici- 
pation in  government  do  not  authorize  any  gov- 
ernment or  group  of  governments  to  violate 
inter-American  commitments  on  nonintervention ; 
the  representative  of  Guatemala,  although  unable 
to  vote  on  the  resolution,  stated  his  Government's 
full  approval  of  the  concept  it  expressed. 

A  fifth  resolution,  approved  unanimously,  stipu- 
lates that  the  Council  of  the  Oas,  through  its 
competent  organs,  shall  initiate  studies  of  the  diffi- 
cult and  complex  questions  that  the  Investigating 
Committee  propounded. 

Such  studies  include  the  following  subjects :  (1) 
the  possibilities  of  stimulating  and  developing 
the  effective  exercise  of  representative  democracy, 
with  special  emphasis  on  suffrage  and  the  principle 
of  free  elections;  (2)  means  for  strengthening  and 
improving  the  1928  Habana  Convention,  prescrib- 
ing measures  governments  should  use  to  prevent 
the  preparation  of  activities  designed  to  foment 
civil  strife  in  other  countries ;  and  (3)  the  "regimen 
of  political  asylees,  exiles,  and  refugees." 

That  practical  achievement  rather  than  aca- 
demic assessment  is  anticipated  as  a  result  of 
these  studies  is  attested  by  the  careful  stipulation 
of  procedures  for  handling  them.  These  require 
that,  in  the  case  of  the  1928  Habana  Convention, 
a  document  be  produced  to  be  submitted  directly 
to  the  governments  and  that,  on  the  other  items, 
topics  be  prepared  for  action  at  an  Inter- American 
Conference,  the  supreme  organ  of  the  Organization 
of  American  States. 

The  consultative  organ  approved  other  resolu- 
tions that  urge  the  governments  directly  concerned 
to  normalize  their  mutual  relations  as  soon  as 
possible  and  express  the  hope  that  governments 
which  have  not  ratified  basic  inter-American  in- 
struments will  give  this  matter  prompt  attention. 
Finally,  the  Organ  of  Consultation,  after  stating 
that  the  members  of  the  Investigating  Committee 
"have  deserved  well  of  the  nations  of  America" 

and  merited  a  vote  of  "confidence  and  gratitude," 
formally  terminated  the  action  of  the  Council  of 
the  Organization  under  the  Rio  treaty  on  the  cases. 


The  success  of  international  action  may  appear 
to  be  measured  in  terms  of  resolutions  and  docu- 
ments, detailed  and  often  excessively  wordy. 
Nevertheless,  the  documents  resulting  from  the 
actions  of  the  inter-American  Organ  of  Consul- 
tation summarized  above  reveal,  in  themselves, 
achievements  in  the  orderly  development  of  free- 
dom and  international  security  in  the  Western 
Hemisphere.  Furthermore,  many  of  the  steps 
which  the  various  bodies  took  in  producing  that 
finished  work  on  specific  cases  constitute  invalu- 
able precedents  which  will  either  make  the  need 
for  future  action  less  likely  or  strengthen  the 
means  for  meeting  threats  which,  in  the  future, 
may  unfortunately  occur. 

The  documents  alone,  however,  can  never  tell 
the  whole  story.  Any  impression  that  the  3 
months  in  which  the  inter-American  peace  ma- 
chinery was  at  work  on  these  problems  were  com- 
pletely devoid  of  rivalry,  the  struggle  for  political 
advantage,  or  even  hostility  would  be  misleading. 
Issues  were  involved  which  touch  most  directly 
upon  the  sensitive  spots  in  relations  among  the 
American  states.  Basically,  though,  the  spirit  of 
the  "convivencia  interamericana" — a  term  which 
no  English  ti'anslation  can  adequately  express — 
characterized  the  proceedings  from  their  begin- 
ning to  the  successful  outcome  of  the  meeting  of 
April  8.  This  spirit  was  expressed  in  the  unend- 
ing efforts  of  all  the  members  of  the  Investigating 
Committee  in  their  impartial  search  for  facts, 
in  the  cooperative  assistance  that  the  governments 
directly  involved  gave  to  the  Investigating  Com- 
mittee, and  in  the  manner  in  which  the  losers  as 
well  as  those  who  had  been  successful  accepted  the 
hotly  debated  issues,  once  they  were  solved. 

The  ultimate  test  of  success  for  this  venture  in 
inter-American  peace-keeping  will,  of  course, 
depend  upon  the  long-range  results  in  reliev- 
ing tensions  and  eliminating  the  basic  causes  of 
the  irregularities  from  which  it  stemmed.  Early 
indications  of  more  than  transitory  success  in  this 
regard  are  encouraging.  In  any  circumstances, 
the  inter-American  community  has,  once  again, 
demonstrated  its  capacity  to  use  effectively  the  ma- 
chinery for  peace  and  security  which  it  has 

July  3,   J  950 


Upholding  Principles  and  Rights 

of  Others  in  the  Process  of  International  Negotiation 

hy  Philip  C.  Jessup 
Ambassador  at  Large  '■ 

Negotiation  is  as  old  as  human  society.  The 
goal  toward  which  we  strive  is  the  place  where  the 
processes  of  negotiation  eventually  prevail  and  the 
drums  of  war  are  silenced  by  the  triumphant 
symphony  of  peace.  That  is  the  goal  of  the  for- 
eign policy  of  the  United  States.  International 
negotiation  is  a  process  and  means,  not  an  end 
in  itself.  To  be  successful,  it  must  take  place  in 
a  situation  where  nations,  for  whatever  reason,  are 
willing  to  reconcile  their  interests  with  each  other. 
The  basic  difficulty  which  we  should  keep  in  mind 
in  discussing  the  role  of  negotiation  is  the  diffi- 
culty of  creating  a  situation  wherein  nations  are 
willing  to  reconcile  and  adjust  their  interests. 

The  process  of  international  negotiation  re- 
quires concessions  but  not  concessions  at  the  ex- 
pense of  principles  or  of  the  rights  of  others.  Ap- 
peasement is  again  a  distortion  of  negotiation  and 
creates  instead  of  allaying  tension. 

There  is  unfortunately  abroad  in  the  world 
today  a  philosophy  which  sees  no  evil  in  tension. 
That  philosophy,  put  into  practice  on  a  national 
scale,  is  the  natural  and  inevitable  result  of  a  dis- 
regard of  what  the  Charter  of  the  United  Nations 
calls  "faith  in  fundamental  human  rights,  in  the 
dignity  and  worth  of  the  human  person."  The 
system  of  the  Soviet  police  state,  like  that  of  the 
similar  Nazi  regime,  sees  no  value  in  the  individ- 
ual. From  this  point  they  move  with  some  logic 
and  no  humanity  to  the  denial  of  the  concept  of 
the  equality  of  states  which  is  one  of  the  principles 
on  which  the  United  Nations  is  based.  The  ])olice- 
state  system  cannot  confine  its  theory  of  brutal 
suppression  within  its  own  frontiers.  This  is  in- 
deed the  absolute  power  which  corrupts  absolutely. 
In  international  relations,  it  results  in  the  practice 
which  we  witness  constantly  of  denying  the  right 
of  smaller  states  to  assert  or  even  to  formulate 

'  Excerpts  from  an  address  delivered  at  Hamilton  Col- 
lege, Clinton,  N.Y.,  on  June  11  and  released  to  the  press 
on  the  same  date. 

their  own  policies.  Some  smaller  states  have  un- 
happily been  forcibly  sucked  into  the  Soviet  orbit 
and  are  compelled  as  satellites  to  revolve  around 
the  Soviet  Union.  That  is  why  a  Bulgarian  can 
be  tried  for  treason,  not  to  Bulgaria  but  to  the 
Soviet  Union.  That  is  why  Yugoslavia  is  itself 
considered  traitorous — again  to  the  Soviet  Union. 

Difficulty  in  Peaceful  Adjustments  With  U.S.S.R. 

The  process  of  negotiations  between  a  govern- 
ment which,  like  ours,  believes  in  freedom  and  a 
government  like  that  of  the  Soviet  Union  which 
does  not  is  obviously  difficult.  We  have  differ- 
ent sets  of  values  and  different  objectives.  It  is 
difficult,  but  it  is  not  impossible.  There  have 
been  situations  in  which  we  have  negotiated  with 
the  Soviet  Union,  and  we  are  prepared  to  do  so 
again.  Particularly  we  are  always  ready  to  carry 
on  that  form  of  multipartite  negotiation  which  is 
the  essence  of  the  United  Nations  system.  The 
difficulty  wliich  for  the  time  being  blocks  that 
channel  of  negotiation  is  the  refusal  of  the  Soviet 
Union  to  particijjate  in  the  various  organs,  com- 
missions, and  committees  of  the  United  Nations 
because  they  are  unwilling  to  have  the  majority 
decide  how  the  question  of  Chinese  representation 
should  be  settled. 

Control  of  Atomic  Weapons 

I  should  like  to  discuss  by  way  of  example  one 
question  which  is  of  prime  importance  and  on 
which  the  Soviet  Union  now  refuses  to  negotiate 
in  the  United  Nations  though  called  upon  by  the 
General  Assembly  to  do  so.  The  question  is  that 
of  the  international  control  of  atomic  weapons. 

Immediately  after  the  revelation  to  the  world 
of  the  discovery  of  the  atomic  bomb,  in  August 
1945,  the  United  States  voluntarily  took  steps  to 
insure  that  the  development  of  atomic  energy 
would  be  f)laced  under  international  control  and 


Deparfmeni  of  Sfate   Bulletin 


that  atomic  energy  would  be  used  only  for  peace- 
ful purposes. 

The  first  step  was  a  meeting  between  the  Presi- 
dent and  the  Prime  Ministers  of  tlie  United  King- 
dom and  Canada  in  November  1945.  The  three 
agreed  upon  a  declaration  calling  for  international 
action  under  the  United  Nations. 

A  month  later,  in  December  1945,  the  Secretary 
of  State  met  in  Moscow  with  the  Foreign  Minis- 
ters of  the  United  Kingdom  and  Soviet  Union 
and  agreed  to  sponsor  a  resolution  in  the  United 
Nations  setting  up  an  international  Atomic 
Energy  Commission.  This  resolution  was  unani- 
mousl}'  approved  by  the  General  Assembly  at  its 
first  session  in  1946,  and  a  Commission  was  es- 
tablished within  the  United  Nations. 

This  Commission  and  its  Committees  held  over 
200  meetings  extending  over  a  period  of  almost  2 
years.  After  thorough  study,  a  majority  of  the 
members  of  the  Commission  evolved  the  basic  out- 
lines of  an  effective  international  control  system 
for  atomic  energy.  Only  the  Soviet  Union  and 
its  satellites  disagreed  with  the  majority  findings. 
They  proposed  a  completely  different  plan  which 
the  majority  found  not  to  be  a  plan  for  effective 
control.  In  1948,  the  Commission  finally  reported 
the  deadlock  which  had  developed  to  the  Security 

The  deadlock  in  the  Commission  was  paralleled 
in  the  Council.  The  Council  was  barred  from 
approving  the  Conmiission's  majority  plan  by  the 
Soviet  veto. 

The  reports  of  the  Commission  were  then  con- 
sidered by  the  General  Assembly,  and  40  member 
governments  voted  to  approve  the  Commission's 
proposals.  Only  the  Soviet  bloc  voted  against 
them.  The  Assembly  called  on  the  Commission 
to  resume  its  work.  It  also  called  on  the  per- 
manent members  of  the  Commission — the  perma- 
nent members  of  the  Security  Council  plus  Can- 
ada—to consult  together  to  determine  if  a  basis 
for  agreement  existed.  The  Soviet  representative 
opposed  this  proposal.  He  stated  that  there  was 
no  basis  for  consultation,  and  that  such  discus- 
sions were  unnecessary. 

After  the  Assembly  session,  the  Commission 
did  start  meeting  again.  But  it  found  itself  still 
confronted  by  the  impasse  created  by  the  Soviet 
Union's  unwillingness  to  negotiate  on  the  basis  of 
a  plan  wliicli  would  provide  adequate  safeguards. 
After  long  deliberation  the  Commission  concluded 
that  no  useful  purpose  was  being  served  by  con- 
tinuing discussion  until  such  time  as  the  permanent 
members  found  a  basis  for  agreement. 
_  Last  fall,  at  New  York,  after  several  consulta- 
tions among  the  permanent  members  had  resulted 
m  no  progress,  the  General  Assembly  considered 
further  the  work  of  the  Atomic  Energy  Com- 
mission. The  Assembly  reaffirmed  its  support 
for  the  United  Nations  plan.  The  Assembly  again 
called  for  consultations  among  the  permanent 
members  and  requested  them  to  explore  all  avenues 

July  3,  1950 

which  might  lead  to  agreement.  These  consulta- 
tions were  begun.  They  were  suspended  in  Jan- 
uary of  this  year  as  a  result  of  the  Soviet  walk-out. 

The  ]3lan  evolved  by  the  majority  of  the  members 
of  the  United  Nations  involves  the  concept  of  an 
international  agency  which  would  manage  all 
atomic  activities  on  behalf  of  the  signatory  nations. 
This  plan  was  based  on  proposals  submitted  by 
the  United  States  in  1946.  We  are  justly  proud 
of  these  proposals.  We  offered,  in  effect,  to  turn 
over  our  atomic  resources  and  capacity  to  an  inter- 
national authority  so  that  these  resources  could 
benefit  all  mankind,  and  so  that  the  world  would 
not  live  under  the  threat  of  an  atomic  war.  Our 
original  proposals  were  modified  and  elaborated 
in  negotiations  although  their  essential  objectives 
were  retained.  The  plan  finally  worked  out  was 
not  an  "American  plan"  but  oiie  formulated  and 
approved  by  the  overwhelming  majority  of  the 
United  Nations.     It  is  a  United  Nations  plan. 

Tlie  international  agency  to  be  established  under 
this  scheme  would : 

a.  Own  all  uranium  and  thorium,  the  basic 
source  materials,  from  the  moment  they  are  mined 
until  they  are  finally  consumed  as  nuclear  fuel. 

b.  Own,  manage,  and  operate  all  facilities  using 
or  producing  dan<rcrous  quantities  of  nuclear 
fuel — such  as  Oak  Ridge  and  Hanford. 

c.  License  all  nondangerous  facilities  and  activ- 
ities operated  nationally. 

d.  Carry  on  research. 

e.  Exercise  thorough-going  rights  of  inspection 
and  survey  in  order  to  locate  new  ore  sources  and 
to  detect  or  prevent  clandestine  activities.  Mili- 
tary reservations  would  not  be  exempted  from 

The  agency  would  be  a  servant  of  the  signatories. 
The  principles  governing  the  agency's  policies  in 
the  production  and  stockpiling  of  production  fa- 
cilities would  be  spelled  out  in  the  agency's  charter. 
The  treaty  would  also  provide  for  the  prohibition 
of  the  manufacture,  possession,  and  use  of  atomic 
weapons.  And  it  would  make  that  prohibition 
effective  by  the  control  system  it  established.  The 
treaty  would  provide  for  the  disposal  of  existing 
stocks,  would  prescribe  the  stages  whereby  controls 
would  go  into  effect,  define  violations,  and  provide 
effective  enforcement  measures. 

The  Soviets  reject  the  concept  of  a  strong  inter- 
national authority.  Atomic  operations  would 
continue  mainly  on  a  national  basis.  Their  pro- 
posals provide  that : 

a.  Atomic  weapons  would  be  "prohibited"  by  a 
paper  convention. 

b.  An  International  Control  Commission  would 
be  established  but  its  powers  would  be  limited  to 
making  recommendations  to  governments  and  to 
the  Security  Council,  where  the  veto  would  apply. 
Any  one  of  the  permanent  members  of  the  Coun- 
cil could  thus  prevent  action. 

c.  Nations  would  continue  to  own  materials  and 


own,  operate,  and  manage  all  dangerous  atomic 
energy  facilities. 

d.  Atomic  plants  would  be  subject  to  some  kind 
of  "periodic"  inspection.  But  the  Soviet  Union 
has  not  been  clear  as  to  how  this  inspection  would 
work.  The  Control  Commission  would  have  "ac- 
cess" to  facilities  and  "acquaintance"  with  pro- 
duction operations,  but  inspections  would  be  "pe- 
riodic" and  "normally  inspectors  will  visit  only 
declared  plants." 

The  basic  issue  between  the  United  Nations 
plan  and  the  Soviet  plan  is  that  of  effective  versus 
ineffective  control,  of  real  control  versus  a  pre- 
tense of  control.  The  United  Nations  plan  recog- 
nizes that  the  nature  of  atomic  energy  production 
dictates  the  need  for  close  control  at  all  stages  of 
development.  From  the  time  it  leaves  the  mine 
until  it  reaches  the  end  product,  the  production  of 
atomic  energy  is  a  Dr.  Jekyll  and  Mr.  Hyde:  It 
can  be  turned  to  beneficial  or  destructive  uses.  It 
can  transform  itself  from  Dr.  Jekyll  to  Mr.  Hyde 
at  any  moment  and  at  any  stage. 

No  halfway  measures — such  as  "Monday  and 
Thursday"  inspections  or  "periodic"  inspections — 
would  offer  assurance  against  the  diversion  of 
nuclear  fuel  from  peacetime  to  military  use.  Our 
federal  or  any  state  government  would  never  be 
satisfied  with  a  system  for  inspecting  banks  or 
meat-packing  plants  which  was  based  on  the  no- 
tion that  the  institution  to  be  inspected  should  be 
warned  in  advance  when  the  inspectors  would 
arrive.  Can  we  as  a  nation  accept  such  a  notion 
where  our  very  national  existence  may  be 
involved  ? 

The  Soviet  control  convention  is  so  devoid  of 
effective  safeguards  tliat  all  that  remains  in  effect 
is  a  convention  on  prohibition — a  paper  conven- 
tion on  prohibition.  Such  a  convention  is  no  bet- 
ter than  the  good  faith  of  its  signatories.  This 
we  must  realize,  as  a  result  of  bitter  experience, 
is  not  good  enough.  It  is  indeed  worse  than  no 
plan  at  all.  It  might  deceive  some  with  its  il- 
lusory security,  but  it  would  not  in  fact  provide 
the  substance  of  security.  It  might  bring  atomic 
disarmament  in  the  West.  But  the  West  would 
have  no  assurances  as  to  the  atomic  disarmament 
actually  carried  out  in  the  Soviet  world,  behind 
the  Iron  Curtain. 


The  difference  between  the  United  Nations  and 
the  Soviet  plans  reflects  a  fundamental  cleavage 
between  the  aims  of  the  majority  and  the  minority. 
Representatives  of  Canada,  China,  France,  the 
United  Kingdom,  and  the  United  States  reported 
as  follows  to  the  General  Assembly  in  1949 : 

All  the  Sponsoring  Powers  other  than  the  U.S.S.R. 
put  world  security  first  and  are  prepared  to  accept  in- 
novations in  traditional  concepts  of  international  co- 
operation, national  sovereisnty  and  economic  organiza- 
tion where  these  are  necessary  for  security.  The 
Government  of  the  U.S.S.R.  puts  its  sovereignty  first  and 

is  unwilling  to  accept  measures  which  may  impinge  upon 
or  interfere  with  its  rigid  exercise  of  unimpeded  state 

The  willingness  to  accept  some  restrictions  on 
sovereignty  is  one  of  the  great  and  hopeful  at- 
titudes in  the  world  today.  The  Schuman  pro- 
posal with  respect  to  the  European  coal  and  steel 
inditstries  is  the  most  recent  example  of  this  pro- 
gressive spirit. 

The  behavior  of  the  Soviets  in  the  atomic  energy 
negotiations  shows  these  features : 

1.  Distrust  of  the  proposals  of  other  nations. 

2.  An  effort  to  get  concessions  from  other 
nations  without  yielding  anything  themselves. 

3.  Bitter  denunciation  of  the  opposition,  and 
vicious  propaganda  attempts  to  sow  discord  and 
arouse  suspicion. 

4.  Finally,  steady  freezing  of  Soviet  opposition, 
as  though  their  own  propaganda  had  a  certain 
self-propagating  quality. 

This  last  feature  is  most  disturbing.  Yet  the 
Soviet  system  seems  to  have  this  effect.  Public 
statements  from  the  Kremlin  set  the  tone  and 
give  the  cue  to  many  organizations  and  publica- 
tions throughout  the  world  which,  in  some  form 
or  other,  repeat  the  Kremlin's  ideas.  These  are 
then  reported  back  as  the  sentiment  of  the  peoples 
of  the  world.  These  reinforcing  echoes  of  their 
own  voices  apparently  solidify  the  original  views 
of  the  Kremlin.  It  is  as  though,  in  the  words  of 
Mr.  X,  in  his  now  famous  article  in  Foreign 
Affairs : 

It  is  an  undeniable  privilege  of  every  man  to  prove 
himself  right  in  the  thesis  that  the  world  is  his  enemy; 
for  if  he  reiterates  it  frequently  enough  and  makes  it  the 
bacliground  of  his  conduct  he  is  bound  eventually  to  be 

It  seems  that  there  could  be  no  clearer  statement 
of  what  is  happening  in  the  Atomic  Energy  Com- 
mission of  the  United  Nations.  At  the  start  of 
the  negotiations,  either  from  motives  having  to  do 
with  their  internal  situation,  or  from  suspicion 
of  the  motives  of  others,  the  Soviet  representatives 
took  the  position  that  the  majority  plan  was  a 
hostile  gesture.  Failing  to  make  an  objective 
study  of  the  elements  essential  to  any  real  con- 
trol, and  with  no  informed  body  of  public  opinion 
which  could  cause  them  to  reconsider  their  original 
position,  the  Kremlin  has  seemed  to  become  in- 
creasingly committed  to  a  course  which  is  as 
dangerous  to  the  Soviet  Union  as  it  is  to  the  rest 
of  the  world. 

The  appropriate  forum  for  atomic  energy  nego- 
tiations as  approved  by  the  last  General  Assembly 
is  the  forum  of  the  six  permanent  members  of  the 
United  Nations  Atomic  Energy  Commission.  The 
United  States  stands  ready  at  all  times  to  take  part 
in  the  consultations  in  that  forum  whenever  the 
Soviet  Union  chooses  to  return  to  it. 

We  believe  the  United  Nations  plan  is  an  effec- 
tive plan.  It  has  our  support.  But,  as  the  Presi- 
dent said  last  February, 


Department  of  State  Bulletin 

...  It  has  our  support  not  because  of  its  form  or  its 
words  Init  because  we  believe  it  would  achieve  effective 
control.  The  stakes  are  too  large  to  let  us,  or  any  nation, 
stand  on  pride  of  authorship.  We  ask  only  for  a  plan 
that  provides  an  effective,  workable  system — anything 
less  would  be  a  sham  agreement.  Anything  less  would 
increase,  not  decrease,  the  dangers  of  the  use  of  atomic 
energy  for  destructive  purposes.  We  shall  continue  to 
examine  every  avenue,  every  possibility  of  reaching  real 
agreement  for  effective  control. 

But  we  will  not  rely  merely  on  a  paper  conven- 
tion "prohibiting"  the  use  of  the  atomic  bomb. 
We  must  not  only  prohibit  the  use  of  the  bomb, 
we  must  also  establish  a  system  which  will  make 
that  prohibition  effective.  That  is  the  crucial  dif- 
ference between  the  United  Nations  and  Soviet 
plans.  It  is  the  difference  between  eliminating  or 
continuing  to  live  under  the  threat  of  atomic  war. 

Strength  as  Basis  for  Negotiating  With  Soviets 

These  negotiations  illustrate  the  difficulty  of 
peaceful  adjustments  with  the  Soviet  Union.  It 
would  be  dishonest  to  deny  that  the  attitude  and 
action  of  the  Soviet  Union  creates  a  threat  to  the 
peace  of  the  world.  Their  actions  do  belie  their 
peaceful  protestations.  They  are  devoting  a 
huge  proportion  of  their  resources  to  military  pur- 
poses. There  is  nothing  in  their  history  to  indi- 
cate that  this  great  military  machine  of  theirs  is 
dedicated  to  the  cause  of  peace  and  freedom. 
There  is  abundant  evidence  to  the  contrary. 
There  is  nothing  in  their  political  literature  or 
philosophy  to  indicate  that  they  respect  weakness 
even  though  it  were  weakness  inspired  by  benevo- 
lence and  good  will.  Neither  we  nor  other  nations 
who  share  our  view  of  life  and  dedication  to  free- 
dom are  willing  to  place  ourselves  at  the  mercy  of 
the  Soviet  Union.  The  fate  of  the  Baltic  states, 
of  a  Czechoslovakia,  of  a  Hungary,  or  a  Poland 
is  not  one  which  we  crave  for  ourselves  or  our 

In  the  face  of  such  an  aggressive  imperialist 
system  as  that  of  the  Soviet  Union,  there  is  a  pre- 
requisite to  negotiation.  That  prerequisite  is 
strength.  It  must  be  a  strength  sufficient  to  be 
apparent  to  the  rulers  in  the  Kremlin.  It  must 
be  sufficient  and  sufficiently  long  maintained  to 
convince  those  rulers  that  their  policies,  their  will 
cannot  be  imposed.  It  must  be  an  economic 
strenght  which  continues  to  demonstrate  the  fal- 
lacy of  their  Marxian  concept  that  con- 
tains the  seeds  of  its  own  decay.  It  must  be  a 
military  strength  which  negates  the  possibility  of 
a  repetition  of  the  tragic  histories  of  armed  sub- 
jection. It  must  be  a  spiritual  strength  which  not 
only  stands  firm  but  which  marches  confidently 
forward  to  greater  and  greater  well-being  for  the 
common  man  and  woman  in  every  part  of  the 
■world.  On  the  basis  of  such  strengtli  in  the  free 
world,  the  Kremlin  may  decide  that  it  too  has  an 
interest  in  avoiding  conflict  and  reducing  tensions. 
Then  negotiations  may  lead  to  their  rightful  goal. 

Army  Attache,  Declared  Persona 
Non  Grata,  Withdrawn  From  Rumania 

[Released  to  the  press  June  21] 

The  Rumanian  Oovemment  has  declared  persona  non 
grata  Capt.  Herschel  Butsinpiller,  United  States  Assistant 
Army  Attach^  of  the  American  Legation,  Bucharest,  Ru- 
mania. In  conformity  with  customary  diplomatic  prac- 
tice, the  United  States  Government  is  tvithdraimng  Cap- 
tain Butsinpiller  hut  has  denounced  the  basis  of  the 
Rumanian  Government's  demand. 

The  United  States  Charge  d' Affaires  at  Bucharest,  Murat 
Williams,  on  June  20  delivered  informally  to  the  Rumanian 
Foreign  Office  the  reply  of  the  United  States  Government 
as  follows: 

The  Government  of  the  United  States  has  taken 
note  of  the  manner  in  which  the  Rumanian  Gov 
ernment  has  misrepresented  an  action  on  the  part 
of  certain  members  of  the  American  Legation  re- 
lating to  the  disposal  of  some  obsolete  small  arms 
ammunition.  The  United  States  Government  has 
also  noted  the  Rumanian  Government's  demand  in 
this  connection  for  the  recall  of  Captain  Herschel 
Hutsinpiller,  Assistant  United  States  Army  At- 
tache at  Bucharest. 

It  is  illustrative  of  the  conduct  of  diplomatic 
relations  by  the  Rumanian  Government  that, 
through  its  organs  of  propaganda,  it  should  have 
launched  a  new  virulent  attack  against  the  Ameri- 
can Legation  and  the  United  States  Government 
on  the  basis  of  an  artificially  exaggerated  and 
distorted  incident,  without  so  much  as  first  seeking 
an  explanation  through  the  American  diplomatic 
representatives  in  Rumania. 

It  is  also  characteristic  that,  after  stating  on 
June  9  that  the  Rumanian  Government  "would 
leave  it  up  to  the  United  States  Government  to 
decide  what  to  do  about  Captain  Hutsinpiller"  and 
without  awaiting  the  transmission  of  a  reply  from 
the  Government  of  the  United  States,  the  Ruma- 
nian Ministry  of  Foreign  Affairs  on  June  14  should 
have  peremptorily  demanded  the  recall  of  Captain 

The  quantity  of  the  ammunition  in  question  was 
negligible.  It  was  disposed  of  in  an  open  manner 
which  belies  assertions  that  this  action  had  a  clan- 
destine or  secretive  character.  The  false  construc- 
tion placed  by  the  Rumanian  Government-con- 
trolled press  on  the  intentions  of  the  United  States 
Government  and  its  representatives  in  connection 
with  this  insignificant  incident  is  patent  on  its  face. 

The  United  States  Government  is  withdrawing 
Captain  Hutsinpiller.  At  the  same  time,  it  repu- 
diates the  alleged  justification  for  the  Ministry's 
demand.  The  use  which  the  Rumanian  authorities 
have  made  of  this  episode  and  the  abuse,  on  this  as 
on  former  occasions,  of  the  right  to  declare  a 
foreign  official  unacceptable  can  only  lead  to  the 
conclusion  that  the  Rumanian  Government's  action 
is  not  really  based  upon  the  incident  or  upon  the 
conduct  of  Captain  Hutsinpiller  but  is  part  of  a 
deliberate  and  centrally  directed  policy,  being  car- 

July  3,  1950 


ried  out  throughout  Eastern  Europe,  to  mterrupt 
the  normal  conduct  of  diplomatic  relations  between 
the  United  States  and  the  states  of  that  area. 

On  June  6,  1950,  the  official  organ  of  the  Ruma- 
nian Workers  Party  (Communist)  launched  a  new 
propaganda  attack  upon  the  American  Legation 
at  Bucharest  by  publishing  a  letter  signed  by  a 
janitor  of  its  service  attache's  office.  The  letter 
stated  that  the  writer  had  been  an  eye  witness  to 
the  destruction  by  two  enlisted  men  attached  to 
that  office  of  "four  cases  and  a  small  sack  contain- 
ing ammunition  for  pistol  and  automatic  weapons." 
This  ammunition  was  said  to  have  been  thrown 
into  Lake  Snagov,  a  small  lake  in  the  environs  of 
Bucharest,  from  the  jetty  of  a  "villa"  occupied  by 
Captain  Hutsinpiller. 

The  Rumanian  press  as  a  whole  took  up  the 
Government-inspired  cry.  It  related  the  incident 
to  trials  of  the  past  few  years  which  are  purported 
to  demonstrate  espionage  and  subversive  activities 
of  the  American  and  British  diplomatic  missions. 
The  most  recent  of  these  trials  produced  alleged 
evidence  that  the  British  Legation  was  hiding 
arms  to  be  supplied  to  groups  of  Rumanian  dissi- 
dents. The  ammunition-dumping  incident  was 
given  a  similar  interpretation. 

The  underlying  facts  of  the  situation  appear 
to  be  that  the  reported  incident  involved  the  dispo- 
sal of  a  small  quantity  of  outdated  ammunition 
left  over  from  the  supplies  of  the  United  States 
military  representation  of  the  Allied  Control  Com- 
mission for  Rumania.  During  the  Armistice 
period,  that  mission  represented  the  United  States 
as  one  of  the  three  occupying  powers.  It  was  with- 
drawn in  December  1947  in  conformity  with  pro- 
visions of  the  Treaty  of  Peace  with  Rumania. 

In  addition  to  Captain  Hutsinpiller,  who  has 
been  on  duty  in  Rumania  since  March  191:7,  the 
Americans  mentioned  in  the  Rumanian  account 
are  Sgt.  John  K.  Reynolds  and  Corp.  Byron  L. 
Bird.  The  two  enlisted  men  left  Rumania  June 
10  according  to  previous  schedule,  in  line  with  the 
current,  reduction  of  our  Legation's  staff.  Captain 
Hutsinpiller  is  leaving  June  2.5. 

Rumania  Protests  Against  Travel 
Restrictions  on  Personnel  in  U.S. 

Statement  by  Secretary  Acheson 

[Released  to  the  press  June  23] 

Over  the  past  3  years,  the  Rumanian  Govern- 
ment has  subjected  our  diplomatic  representation 
at  Bucharest  to  progressively  severe  restrictions, 
impediments,  and  discourtesies.     These  not  only 


drastically  curtail  the  performance  by  our  mission 
of  its  normal  diplomatic  and  consular  functions, 
but  they  also  violate  the  existing  consular  agree- 
ment with  Rumania  and  effectively  deprive  our 
chief  of  mission  of  rights  and  privileges  to  which 
he  is  entitled  by  his  special  responsibilities  under 
the  Treaty  of  Peace  with  Rumania. 

For  a  year  now,  there  have  been  in  effect  in 
Rumania  travel  restrictions  which,  as  adminis- 
tered by  the  Rumanian  authorities  virtually  con- 
fine our  representatives  to  Bucharest  and  its  imme- 
diate environs.  Theoretically,  these  restrictions 
are  imposed  on  all  diplomatic  personnel.  Theo- 
retically also,  our  people  may  travel  to  a  few  des- 
ignated" places  by  special  permission.  This  is  of 
little  value  since  the  Rumanians  as  a  rule  delay  un- 
duly or  fail  to  issue  travel  permits. 

At  the  time  the  travel  restrictions  were  imposed, 
we  were  given  informal  assurance  that  we  had  only 
to  ask  and  we  would  be  permitted  to  travel  to 
Constanza  in  connection  with  incoming  shipments 
for  the  Legation.  This,  like  many  other  such  as- 
surances, has  proved  hollow. 

The  Rumanian  Government  has  deprived  our 
personnel  of  premises  for  which  they  had  rental 
contracts  at  destinations  where  they  might  be  per- 
mitted to  go.  AVlien  no  other  accommodations  are 
available,  it  is  of  little  use  for  them  to  travel 

Altogether  the  restrictions  and  harassments  to 
which  our  mission  in  Rumania  has  been  subjected 
by  the  Rumanian  Government  are  more  compre- 
hensively severe  than  those  of  any  other  country. 
We  do  not  accept  the  thesis  that  we  must  conduct 
our  relations  toward  one  state  and  its  representa- 
tives, regardless  of  its  behavior  toward  us  and  our 
representatives,  in  the  same  way  as  we  would 
toward  other  states. 

The  institution  on  May  25  of  the  travel-pro- 
cedure applicable  to  personnel  of  the  Rumanian 
Legation  here  involves  reciprocity  of  diplomatic 
comity,  a  principle  which  the  Rumanians  have  em- 
jjhasized  to  an  extreme  degree.^  As  the  Rumanian 
Government  was  informed,  our  administration  of 
the  travel  procedure  will  be  carried  out  with  a  view 
to  the  current  treatment  of  our  representatives  in 

It  is  interesting  to  note  that  the  Rumanian  pro- 
test recognizes  that  the  imposition  of  travel  re- 
strictions by  a  receiving  country  upon  the  official 
personnel  of  a  sending  country  constitutes  a  lim- 
itation on  the  normal  activity  of  a  diplomatic  mis- 
sion. When  the  Rumanian  Government  is  disposed 
to  remove  the  restrictions  which  it  has  placed  on 
the  travel  of  our  representatives  in  Rumania,  we 
will  be  ready  to  alter  appropriately  the  restrictions 
which  are  presently  applicable  to  ijersonnel  of  the 
Rumanian  Legation  here. 

'  Bulletin  of  June  5,  1950,  p.  921. 

Department  of  State  Bulletin 

The  Need  for  an  International  Trade  Organization 

Views  of  Howard  W.  McGrath 
Attorney  General 

The  following  letter  dated  April  I4,  1950,  was  sent 
from  the  Attorney  General,  Hoicard  W.  McOrath,  to  the 
Chairman  of  the  House  Committee  on  Foreign  Affairs, 
John  Kce. 

My  dear  Mr.  Congressman  :  This  is  in  response 
to  your  request  for  the  views  of  the  Department 
of  Justice  with  respect  to  tlie  approval  of  tlie 
Havana  Charter  for  an  International  Trade  Or- 
ganization, commonly  known  as  the  Ito  Charter. 

The  Department  of  Justice  is  primarily  inter- 
ested in  Chapter  V  of  the  Ito  Charter  which 
would  provide  the  first  international  machinery 
intended  to  cope  with  restrictive  business  prac- 
tices. Since  others  will,  or  have,  commented  on 
other  parts  of  the  proposed  Charter  which  relate 
more  directly  to  the  work  of  their  particular  de-r 
partments,  I  would  like  to  direct  my  remarks  to 
Chapter  V. 

As  you  are  well  aware,  production  and  market- 
ing of  important  raw  materials  and  manufactured 
commodities  in  world  trade  are  frequently  con- 
trolled by  cartels,  combines  and  other  restrictive 
international  business  arrangements.  In  their  de- 
sire to  increase  profits  and  avoid  competition  these 
organizations  engage  in  practices  which  reduce 
the  volume  of  world  trade  and  employment,  such 
as  division  of  fields  of  activity,  division  of  mar- 
kets, allocation  of  production  or  export  quotas, 
restriction  on  new  capacity  and  fixing  of  prices 
and  terms  of  sale.  The  policy  of  the  United 
States  to  eliminate  restrictive  practices  in  the 
foreign  trade  of  our  country  has  long  been  es- 

In  the  successful  negotiation  of  the  Ito  Char- 
ter, in  general,  and  Chapter  V  in  particular,  fifty- 
four  other  nations  important  in  international 
trade  have  now  indicated  a  willingness  to  work 
together  with  the  United  States  in  extending  the 
general  policy  of  eliminating  restrictive  practices 
in  world  trade.  The  success  of  our  Government's, 
negotiations  in  getting  such  an  agreement  among 
other  delegations  representing  different  national 
experiences  and  traditions  is  in  itself  an  accomp- 

Jo/y  3,   7950 

lishment,  and  a  real  step  toward  breaking  down 
barriers  to  world  trade. 

I  should  like  to  point  out  at  the  outset  that  the 
Ito  Charter  clearly  preserves  the  strength  of  our 
competitive  traditions  and  our  antitrust  laws  and 
their  administration.  The  Ito  is  not  given  the 
power  to  interfere  with  the  domestic  laws  or  pro- 
cedures of  the  United  States  or  any  other  nation. 

The  Charter  contains  an  express  provision  that 
"no  act  or  omission  to  act  on  the  part  of  the  Or- 
ganization shall  preclude  any  Member  from  en- 
forcing any  national  statute  or  decree  directed 
toward  preventing  monopoly  or  restraint  of 
trade."  This  provision  keeps  inviolate  our  anti- 
trust legislation.  It  says  in  effect  that  if  the  Ito 
does  not  find  a  violation  of  the  Charter  in  a  partic- 
ular instance,  but  the  United  States  nevertheless 
finds  that  its  laws  have  been  violated,  the  right  of- 
the  United  States  to  enforce  its  laws  is  not  im- 
paired. Ito  decisions  or  recommendations — or 
lack  of  them — do  not  supersede,  supplant  or  mod- 
ify in  any  way  our  antitrust  laws. 

The  Charter  should  provide  a  useful  instrument 
for  extending  the  principles  of  our  competitive 
system  to  other  countries  and  thereby  render  the 
enforcement  of  the  antitrust  laws  themselves  in- 
creasingly effective.  While  the  Charter  does  not 
write  a  Sherman  Act  for  the  world,  it  does  set  a 
pattern,  clearly  recognizable  as  American  in  ori- 
gin, for  curbing  restrictive  business  practices,  such 
as  I  have  pointed  out  above,  affecting  international 
trade.  The  Organization  would  be  empowered  to 
receive  complaints  from  Member  governments, 
initiate  investigations,  hold  hearings,  and  make 
reports  and  recommendations  for  remedial  meas- 
ures, with  final  action  resting  in  the  individual 
governments.  Subscribing  nations,  agreeing  to 
this  pattern,  commit  themselves  to  take  such  meas- 
ures as  will  achieve  the  objective  of  the  Charter. 
The  effect  of  this  commitment  is  to  raise  the  stand- 
ards of  other  countries  for  curbing  cartels  and 
restrictive  business  practices  toward  our  level — 


and  not  the  reverse.  In  this  respect,  the  Charter 
helps  to  extend  the  concepts  of  free  enterprise 
upon  which  our  own  antitrust  laws  are  based. 

The  commitment  of  Members  to  take  full  account 
of  Ito  recommendations  for  remedial  action  in 
specific  instances,  can  be  most  useful  in  prevent- 
ing cartels  and  conspiracies  in  restraint  of  interna- 
tional trade.  Thus,  the  Ito  provides  machinery 
for  effecting  a  substantial  measure  of  international 
cooperation  in  avoiding  restrictive  business  prac- 
tices, and  bringing  about  an  increasing  acceptance 
of  free  enterprise  objectives. 

Frequently,  in  the  course  of  investigating  or 
prosecuting  restraints  upon  our  foreign  commerce 
we  find  some  of  the  guilty  parties  wholly  outside 
the  jurisdiction  of  our  courts.  This  means  that 
while  we  may  cut  off  some  parts  of  the  offense, 
complete  and  adequate  relief  cannot  always  be 
achieved.  The  result  in  some  cases  may  be  to  limit 
the  effectiveness  of  the  Justice  Department  and  of 
our  courts  in  eliminating  violations  of  our  anti- 
trust laws.  The  Charter  provides  methods  which 
are  designed  to  overcome  these  jurisdictional  limi- 

One  of  these  methods  consists  of  voluntary  con- 
sultation among  Member  nations.  Wlien  a  'Mem- 
ber nation  considers  that  in  any  particular  in- 
stance a  business  practice  has  or  is  likely  to  have 
a  harmful  effect,  it  may  consult  directly  with  other 
Members  concerned  "with  a  view  to  reaching  mu- 
tually satisfactory  conclusions."  Or,  if  Members 
wish,  they  may  request  the  Ito  to  facilitate  such 
consultation.  This  contemplates  a  cooperative 
method  by  which  Members  may  agree  among 
themselves  as  to  the  best  means  of  dealing  with 
mutual  problems  of  international  cartels  or  re- 
strictive business  practices.  In  carrying  out  cor- 
rective measures,  each  Member  is  to  act  within  its 
own  jurisdiction  in  accordance  with  its  own  con- 
stitution and  economic  organization.  In  this  way 
irritating  jurisdictional  obstacles  may  be  avoided. 
Another  method  for  avoiding  jurisdictional  bar- 
riers consists  of  cooperation  among  Members  "for 
the  purpose  of  making  more  effective  within  their 
respective  jurisdictions  any  remedial  measures 
taken  in  furtherance  of  the  objectives  of  this 
Chapter  and  consistent  with  tlieir  obligations 
under  other  provisions  of  this  Charter."  By  this 
procedure  restrictive  or  monopolistic  practices 
may  be  eliminated  voluntarily  and  amicably. 

The  possibilities  of  Ito  success,  so  far  as  Chapter 
V  is  concerned,  seem  good.  I  am  sure  that  many 
other  governments  have  had  unhappy  experiences 
with  international  cartels  and  would  welcome  a 
mechanism  through  which  harmful  practices  of 
these  enterprises  might  be  curbed.  It  is  hearten- 
ing to  note  that  Sweden,  Norway,  Canada,  and 
more  recently  Great  Britain,  have  passed  statutes 
providing  for  continuing  commissions  to  investi- 
gate restrictive  business  practices  within  their 
respective  jurisdictions.  These  laws  will  help  im- 
plement their  obligations  under  the  Charter.     The 


significance  of  the  new  British  law  relative  to  the 
Ito  Charter  was  indicated  in  the  House  of  Lords 
during  debate  on  the  Bill.  In  asking  for  a  second 
reading  on  July  5,  1948,  the  First  Lord  of  the 
Admiralty  (Viscount  Hall),  stated: 

The  present  Bill  was  drafted  at  the  same  time  as  the 
Charter  was  being  given  its  final  shape  at  Havana.  The 
two  documents  are  entirely  consistent;  the  procedure  of 
the  International  Trade  Organization  will,  like  our  own, 
be  one  of  investigation  into  particular  restrictive  arrange- 
ments to  try  to  establish  what  effects  they  have  on  inter- 
national trade.  If  at  a  later  date  His  Majesty's  Govern- 
ment ratify  the  Charter,  and  are  called  upon  to  take  any 
action  under  Chapter  V,  this  Bill  will  provide  us  with 
adequate  power  to  carry  out  our  international  obliga- 
tions .  . .  The  Bill  is  in  line  with  developments  in  other 
countries  ...  It  has  the  support  of  all  Parties  in  its 
general  purpose. 

Furthermore,  the  Austrian  Government  has  re- 
cently introduced  antitrust  legislation  in  its  Par- 
liament, a  commission  under  the  Minister  of  Com- 
merce of  Denmark  is  drafting  anti-monopoly 
legislation,  and  the  French  Government  is  also 
drafting  an  antitrust  law. 

The  significant  progress  that  has  been  made  in 
assisting  the  economic  recovery  of  Western  Europe 
has  made  possible  an  increasing  emphasis  under 
the  ERP  for  the  creation  of  an  integrated  Western 
European  economy.  The  liberalization  of  trade 
and  the  creation  of  a  wide  Western  European 
market  as  measures  to  obtain  increased  produc- 
tivity, lowered  costs,  a  higher  standard  of  living 
and  the  establishment  of  a  viable  European  econ- 
omy can  be  promoted  by  the  Ito.  Following  the 
termination  of  the  European  Recovery  Program 
the  Ito  may  well  become  the  most  important 
single  international  instrument  for  the  attain- 
ment of  an  expanding  competitive  international 
trade.  Under  Chapter  V  machinery  can  be  estab- 
lished to  help  prevent  the  regrowth  of  cartel  ar- 
rangements which  would  nullify  by  private  agree- 
ment these  economic  objectives.  Promptness  in 
getting  the  Ito  under  way  will,  I  believe,  help  to 
facilitate  world  economic  recovery  and  promote 
continued  prosperity. 

The  Ito  represents  the  high  water  mark  in 
efforts  to  establish  a  cooperative  intergovern- 
mental organization  equipped  with  the  machinery 
and  procedures  necessary  to  solve  common  prob- 
lems in  the  field  of  international  business  prac- 
tices. If  the  Ito  is  competently  and  adequately 
staffed,  and  properly  administered,  it  should  in 
my  opinion,  prove  most  helpful  in  eliminating  in- 
ternational restrictive  cartel  arrangements  which 
have  worked  hardships  on  American  and  foreign 
economies  alike.  This,  in  turn,  would  also  remove 
an  important  source  of  international  ill-will  gener- 
ated by  restrictive  cartel  activities.  Participation 
in  the  Ito  could  provide  a  valuable  supplement 
to  the  unilateral  action  to  which  we  have  in  the 
past  been  limited. 

I  therefore  believe  we  should  support  this  Char- 
ter and  should  participate  actively  in  the  Ito. 

Department  of  State  Bulletin 

Commission  on  Migratory  Labor 


The  President's  Commission  on  Migratory  La- 
bor held  its  first  meeting  on  June  23  to  hear  facts 
presented  by  Government  agencies  on  migi'atory 
labor  problems. 

The  President  appointed  Maurice  T.  Van  Hecke, 
now  professor  of  law,  North  Carolina  University, 
Chairman  of  the  Commission,  and  named  as  the 
other  members: 

Robert  E.   Lucey,  Catholic  Archbishop  of  San  Antonio, 

Paul  Miller,  Chief,  University  of  Minnesota  Extension 

William   Leiserson,  former  Chairman  of  the  Mediation 

Peter  H.  Odegard,  University  of  California,  Professor, 

Political  Science 

The  number  of  migratory  workers  in  the  United 
States  has  been  variously  estimated  at  from  1  to  5 
million  workers. 

During  this  meeting  the  Commission  received 
data  from  the  Department  of  Labor  on  manpower 
problems,  existing  legislation  and  housing  diffi- 
culties ;  from  tlie  Department  of  Agriculture  con- 
cerning industries  using  migratory  labor;  from 
the  Department  of  State  on  international  compli- 
cations ;  from  the  Department  of  Justice  on  immi- 
gration aspects;  and  from  the  Federal  Security 
Agency  on  welfare  problems. 

The  Commission  will  formally  open  its  offices 
on  June  26,  in  Temporary  Building  V  at  14th 
Street  and  Pennsylvania  Avenue,  NW. 

The  two  Washington  meetings  will  form  the 
background  for  public  hearings  in  various  sections 
of  the  nation,  beginning  in  California  and  Texas. 

Previous  studies  have  shown  that  in  many  in- 
stances living  standards  among  migratory  workers 
and  their  families  are  markedly  below  those  of 
other  elements  in  the  population,  and  that  because 
of  the  absence  of  a  fixed  residence  as  well  as  their 
specific  exemption  in  various  laws,  the  migratory 
workers  are  frequently  denied  the  benefits  of  Fed- 
eral, as  well  as  State  and  local,  social  legislation. 

Besides  the  domestic  migratory  workers,  the 
United  States  since  tlie  war  has  imported  farm 
laborers,  principally  from  Mexico.  The  migra- 
tion from  Mexico  is  governed  by  an  international 
agreement  which  was  renegotiated  on  several 
occasions,  the  current  agreement  having  been 
signed  in  1949.  A  number  of  organizations  have 
taken  a  stand  against  the  further  importation  of 
alien  workers,  contending  that  domestic  labor  can 
fulfill  the  needs  in  the  United  States,  while  other 
organizations  have  insisted  that  agricultural  pro- 
duction would  suffer  if  employers  could  not  fall 
back  upon  alien  labor  in  instances  where  domestic 
labor  proved  to  be  insufficient. 


By  virtue  of  the  authority  vested  in  me  as  President  of 
the  United  States,  it  is  hereby  ordered  as  follows : 

1.  There  is  hereby  created  a  Commission  to  be  known  as 
the  President's  Commission  on  Migratory  Labor,  which 
shall  consist  of  a  Chairman  and  four  other  members  to  be 
designated  by  the  President. 

2.  The  Commission  is  authorized  and  directed  to  inquire 

(a)  social,  economic,  health,  and  educational  condi- 
tions among  migratory  workers,  both  alien  and  domestic, 
in  the  United  States ; 

(b)  problems  created  by  the  migration  of  workers,  for 
temporary  employment,  into  the  United  States,  pursuant 
to  the  immigration  laws  or  otherwise ; 

(c)  responsibilities  now  being  assumed  by  Federal, 
State,  county  and  municipal  authorities  with  respect  to 
alleviating  the  conditions  among  migratory  workers,  both 
alien  and  domestic ; 

(d)  whether  sufficient  numbers  of  local  and  migra- 
tory workers  can  be  obtained  from  domestic  sources  to 
meet  agricultural  labor  needs  and,  if  not,  the  extent  to 
which  the  temjMrary  employment  of  foreign  workers  may 
be  required  to  supplement  the  domestic  labor  supply ;  and 

( e )  the  extent  of  illegal  migration  of  foreign  workers 
into  the  United  States  and  the  problems  created  thereby, 
and  whether,  and  in  what  respect,  current  law  enforce- 
ment measures  and  the  authority  and  means  possessed  by 
Federal,  State,  and  local  governments  may  be  strength- 
ened and  improved  to  eliminate  such  illegal  migration. 

3.  The  Commission  shall  make  a  report  of  its  studies  to 
the  President  in  writing  not  later  than  December  15,  1950, 
including  its  recommendations  for  Governmental  action, 
either  legislative  or  administrative. 

4.  In  connection  with  its  studies  and  inquiries,  the  Com- 
mission is  authorized  to  hold  such  public  hearings  and  to 
hear  such  witnesses  as  it  deems  appropriate. 

5.  To  the  extent  that  the  studies,  inquiries,  and  recom- 
mendations of  the  Commission  involve  considerations  of 
international  arrangements  and  policies  the  Commission 
shall  consult  with  the  Department  of  State. 

6.  All  executive  departments  and  agencies  of  the  Fed- 
eral Government  are  authorized  and  directed  to  cooper- 
ate with  the  Commission  in  its  work  and  to  furnish  the 
Commission  such  information  and  assistance,  not  incon- 
sistent with  law,  as  it  may  require  in  the  performance  of 
its  duties. 

7.  During  the  fiscal  year  1950,  the  compensation  of  the 
members  of  the  Commission  (including  traveling  expenses 
and  per-diem  allowances)  and  the  exjpenditures  of  the 
Commission  shall  be  paid  out  of  an  allotment  made  by  the 
President  from  the  appropriation  appearing  under  the 
heading  "Emergency  Fund  for  the  President"  in  the  Inde- 
pendent Offices  Appropriation  Act,  1950  (Public  Law  266, 
approved  August  24, 1949)  ;  and  during  the  fiscal  year  1951 
such  compensation  and  expenditures  shall  be  similarly 
paid  from  any  corresponding  or  like  appropriation  made 
available  for  the  fiscal  year  1951.  Such  payments  shall  be 
made  without  regard  to  the  provisions  of  section  3681  of 
the  Revised  Statutes  (31  U.S.C.  672),  section  9  of  the  Act 
of  March  4,  1909,  35  Stat.  1027  (31  U.S.C.  673)  and  such 
other  provisions  of  law  as  the  President  may  hereafter 

8.  Thirty  days  after  rendition  of  its  report  to  the  Presi- 
dent, the  Commission  shall  cease  to  exist  unless  otherwise 
determined  by  further  Executive  Order. 

Haekt  S.  Teuman 
The  White  House 
June  S,  1950 

'  15  Fed.  Reg.  3499. 

July  3,   1950 



Calendar  of  Meetings' 

Adjourned  During  June  1950 

Port-au-Prince  Bicentennial  Exposition Port-au-Prince  .... 

Ilo  (International  Labor  Organization):  Governing  Body:   112th  Session  Geneva 

Congress  of  International  Association  for  Protection  of  Industrial  Property  Paris 

International  Agricultural  Genetics  Congress Rieti,  Italy 

IcAO  (International  Civil  Aviation  Organization): 

Council:  Tenth  Session Montreal 

Assembly:  Fourth  Session Montreal 

Legal  Committee:  Sixth  Session Montreal 

High  Frequency  Assignment  Planning  Meeting  for  European-Mediter-  Paris 

ranean  Region. 
United  Nations: 

Economic  and  Social  Council: 

Economic  Commission  for  Latin  America:  Third  Session Montevideo 

Economic  Commission  for  Europe:  Fifth  Session Geneva 

Technical  Assistance  Conference Lake  Success 

Who  (World  Health  Organization) : 

Executive  Board:  Sixth  Session .  Geneva 

International  Meeting  of  Tonnage  Measurement  Experts Stockholm 

Fag  (Food  and  Agriculture  Organization) : 

Latin  American  Nutrition  Conference:  Second  Session Rio  de  Janeiro     .... 

International  Congress  for  the  Education  of  the  Deaf  and  Dumb  .    .    .  Groningen,  Netherlands  . 

Biennial  Session  of  the  International  Committee  on  Weights  and  Measures .  Sfevres,  France     .... 

Conference  of  World  Organization  for  Brotherhood Paris 

Brussels  Colonial  Fair,  Third Brussels 

Tenth  International  Ornithological  Congress Upsala,  Sweden   .... 

Twenty-fourth  Session  of  the  Journees  M6dicales Brussels 

International  Wool  Conference Stockholm 

Nineteenth  General  Assembly  of  the  International  Criminal  Police  Com-  The  Hague 


Third  Session,  International  Wheat  Council London 

International  Oil  Shale  Conference Glasgow 

In  Session  as  of  June  30,  1950 

United  Nations: 

Advisory  Council  for  Libya Tripoli 

Visiting  Mission  to  Trust  Territories  in  the  Pacific Pacific  Area 

Trusteeship  Council:  Seventh  Session Lake  Success 

International  Law  Commission:  Second  Session Geneva 

Permanent  Central  Opium  Board:  55th  Session,  Narcotic  Drugs  Super-  Geneva 

visory  Body:  34th  Session;  and  Third  Joint  Session  of  Pcob  and 

National  Capital  Sesquicentennial  Celebration Washington 

Ilo  (International  Labor  Organization): 

33rd  International  Labor  Conference Geneva 

UNESCO  (United  Nations  Educational,  Scientific  and  Cultural  Organiza- 
tion) : 

Seminar  on  Adult  Education Salzburg,  Austria    .    . 

Swiss-Allied  Accord,  Four  Power  Conference  on Bern 

IcAO   Council:  Eleventh  Session Montreal 

Caribbean  Commission:  Tenth  Meeting Martinique 

Sugar  Council,  International:   Meeting  of  Special  Committee London 

North  Atlantic  Council:  Planning  Board  for  Ocean  Shipping London 

Electric  Systems,  International  Conference  on  Large  High  Tension:   13th  Paris 

Biennial  Session. 

'  Prepared  in  the  Division  of  International  Conferences,  Department  of  State. 
34  Department  of  Sfafe  Bulletin 


12-June  8 


26-June  3 


29-June  3 

May  30-June  2 


16- June  5 


30-June  20 


30-June  20 


6-June  26 

June  5- 


31-June  14 























June  19-21 

































Calendar  of  Meetings — Continued 
Scheduled  July  1-August  31,  1950 

United  Nations: 

Economic  and  Social  Council: 

Eleventh  Session Geneva July  3- 

Commission  on  Narcotic  Drugs:  Fifth  Session Lake  Success Aug.  21- 

Subcommission  on  Statistical  Sampling:  Fourth  Session Lake  Success Sept.  5- 

Economic  Commission  for  Asia  and  the  Far  East,  Regional  Conference  Bangkok September 

of  Statisticians. 

Special  Committee  on  Information  Transmitted  under  Article  73(e)  of  Lake  Success Aug.  18- 

the  Charter. 

General  Assembly;  Fifth  Session Lake  Success Sept.  19- 

Meeting  of  the  Council,  International  Organization  for  Standardization   .  Geneva July  3- 

Thirteenth  International  Conference  on  Public  Education Geneva July  6- 

General  Assembly  of  the  International  Union  of  Biological  Sciences  .    .    .  Stockholm July  7- 

International  Congress  of  Private  Law Rome July  8- 

Eighth  International  Congress  of  Agricultural  Industries Brussels July  9- 

Fao  (Food  and  Agriculture  Organization): 

International  Meeting  on  Dairy  Technology Reading,  England  .    .    .  July  10- 

Meeting  of  Fisheries  Technologists Bergen,  Norway  ....  Sept.  17- 

Fourth  World  Power  Conference London July  10- 

Seventh  International  Botanical  Congress Stockholm July  12- 

Unesco  (United  Nations  Educational,  Scientific  and  Cultural  Organiza- 

Seminar  on  "The  Teaching  of  Geography  as  a  Means  of  Developing  Montreal July  12- 

International  Understanding." 

Seminar  on  the   Improvement  of  Textbooks,   Particularly  of  History  Brussels July  12- 


Seminar  on  the  Role  of  Public  and  School  Libraries  in  Adult  Education.  Malmo,  Sweden  ....  July  24- 

North  Atlantic  Council:    Military  Production  and  Supply  Board    ....  Copenhagen July  12- 

Cancer,   Fifth   International  Congress  of  Scientific  Research  and  Social  Paris July  17- 

Struggle  Against. 

Sixteenth  International  Congress  of  Ophthalmology London July  17- 

Second   Meeting  of  the  International  Commission  for  the  Regulation  of  Oslo July  17- 


Fourth  A.ssembly,  World  Organization  of  the  Teaching  Profession     .    .    .  Ottawa July  17- 

Third  International  Conference  of  the  Legal  Profession London July  19- 

Sixth  International  Congress  of  Radiology London July  2.3- 

Sixth  International  Conference  of  Directors  of  Mine  Safety  Research  .    .  Paris July  24- 


Sixth  International  Pediatrics  Congress Ziirich July  24- 

Fourth  International  Congress  of  Soil  Science Amsterdam July  24- 

International  Institute  of  Administrative  Sciences:   Eighth  International  Florence July  25- 


Congress  of  the  International  Union  for  Prevention  of  Venereal  Disease  .  Ziirich July  29- 

First  United  States  International  Trade  Fair Chicago Aug.  7- 

Eleventh  International  Exhibition  of  Cinematographic  Art Venice Aug.  8- 

Radio  and  Television  Exhibition Copenhagen Aug.  11- 

Penal  and  Penitentiary  Commission,  Twelfth  Congress  of  the  Interna-  The  Hague Aug.  13- 


International  Congress  of  the  History  of  Science Amsterdam Aug.  14- 

Fifth  International  Congress  on  Microbiology Rio  de  Janeiro     ....  Aug.  17- 

Edinburgh  Film  Festival Edinburgh Aug.  20- 

Izmir  International  Trade  Fair Izmir Aug.  20- 

Eighth  Convention  of  Speech  and  Voice  Disorders Amsterdam Aug.  21- 

Itu  (International  Telecommunication  Union): 

Fifth  Session,  Administrative  Council Geneva Aug.  21- 

Extraordinary  Administrative  Radio  Conference The  Hague Sept.  1- 

First  International  Congress  on  Archives Paris Aug.  23- 

Vineyards  and  Wine,  Sixth  International  Congress  on Athens Aug.  23- 

International  Federation  for  Housing  and  Town  Planning:  20th  Interna-  Amsterdam Aug.  27- 

tional  Congress. 

Ninth  International  Congress  of  the  Historical  Sciences Paris Aug.  28- 

Ilo-Who  Meeting  of  Joint  Committee  on  Industrial  Hygiene Geneva Aug.  28- 

First  International  Conference  on  Alcohol  and  Traffic Stockholm Aug.  30- 

International  Conference  of  Mathematicians Cambridge,  Mass.   .    .    .  Aug.  30- 

iuly  3,   1950  35 

U.S.  Delegations  to 
International  Conferences 

Methods  and  Techniques  of  Adult  Education 

The  Department  of  State  announced  on  June  19 
that  the  United  States  delegation  to  the  Inter- 
national Seminar  on  Methods  and  Techniques  of 
Adult  Education,  to  be  held  near  Salzburg, 
Austria,  June  18-July  29,  is  as  follows : 

Watson  Dickerman,  assistant  professor  of  education, 
School  of  Education,  University  of  California,  Berkeley, 


Ruth  M.  Brewer,  assistant  to  director,  Chicago  Council  on 
Foreign  Relations,  Chicago,  111. 

Robert  H.  Levin,  national  education  director.  Amalgam- 
ated Clothing  Workers,  Headquarters,  Congress  of 
Industrial  Organizations,  New  York,  N.  Y. 

Thomas  A.  Van  Sant,  director.  Adult  Education,  Baltimore 
Board  of  Education,  Baltimore,  Md. 

The  United  Nations  Educational,  Scientific  and 
Cultural  Organization  (Unesco)  and  the  World 
Federation  of  United  Nations  Associations  are 
jointly  sponsoring  the  Seminar,  which  is  being 
convened  in  response  to  a  recommendation  of  the 
Unesco  International  Conference  on  Adult  Edu- 
cation held  at  Elsinore,  Denmark,  in  June  1949. 

The  objective  of  the  Seminar  is  to  make  a  practi- 
cal study  of  the  methods  and  techniques  of  adult 
education  with  a  view  to  contributing  to  the  ad- 
vancement of  such  methods  and  techniques ;  arriv- 
ing at  a  general  concept  of  adult  education  and 
practical  conclusions  with  regard  to  leadership 
training  and  seminar  techniques;  and  preparing 
documents  designed  to  assist  adult  education 
leaders  and  workers  not  present  at  the  Seminar. 
An  integral  part  of  this  study  will  be  consideration 
of  ways  and  means  by  which  adult  education  can 
be  used  to  promote  international  understanding. 

It  is  expected  that  the  Conference  will  establish 
four  working  groups  to  deal  specifically  with  the 
following  topics :  organization  and  administration 
of  adult  education  programs;  intellectual  and 
scientific  training  techniques  employed  to  foster 
the  adult's  mental  development;  the  economic  and 
social  training  of  adults;  and  methods  and  tech- 
niques appropriate  for  initiating  adults  into  the 
arts,  as  well  as  activities  suitable  to  the  educational 
use  of  spare  time. 

Ornithological  Congress 

The  Department  of  State  announced  on  June  12 
that  Dr.  Alexander  Wetmore,  Secretary  of  the 
Smithsonian  Institution,  Washington,  D.C.,  has 
been  named  chairman  of  the  United  States  dele- 
gation to  the  Tenth  International  Ornithological 
Congress  which  convened  at  Upsala,  Sweden,  on 
June  10.    Dr.  Wetmore  is  also  President  of  the 

Congress.     Assisting  Dr.  Wetmore  are  the  follow- 
ing United  States  delegates : 

Dr.  Herbert  Friedmann,  curator  of  birds,  United  States 

National  Museum,  Washington,  D.C. 
Dr.  Alfred  O.  Gross,  professor  of  biology  and  director, 

Kent    Island    Scientific    Station,    Bowdoin    College, 

Brunswick,  Maine 
Frederick  C.  Lincoln,  assistant  to  the  director.  Fish  and 

Wildlife  Service,  Department  of  the  Interior 
Dr.  S.  Dillon  Ripley,  curator  of  birds,  Peabody  Museum, 

Yale  University,  New  Haven,  Conn. 
Dr.   Josselyn   Van   Tyne,   curator   of  birds.   Museum   of 

Zoology,  University  of  Michigan,  Ann  Arbor,  Mich. 

The  Tenth  Congress,  the  first  since  World  War 
II,  was  organized  by  the  Ornithological  Society 
of  Sweden.  On  the  program  of  the  Congress  are 
included  discussions  on  bird  bandino^  and  bird 
migration.  In  addition,  delegates  will  have  an 
opportunity  to  observe  the  migration,  hibernation, 
estivation,  and  feeding  habits  of  various  birds 
through  excursions  before  and  after  the  Congress 
to  many  points  of  ornithological  interest,  such  as 
breeding  places,  in  Sweden. 

The  United  States  is  one  of  the  few  nations  in 
which  ornithology  is  a  matter  of  practical  govern- 
ment administration.  This  fact  is  the  result  of 
the  enactment  of  such  basic  laws  as  the  Lacey  Act, 
the  Migratory  Bird  Treaty  Act,  which  imple- 
mented conventions  between  the  United  States  and 
Canada  and  between  the  United  States  and  Mexico, 
and  the  Migratory  Bird  Conservation  Act. 

Consular  Conference 

The  Department  of  State  announced  on  June  5 
the  opening  of  a  3-day  consular  conference  at  Rio 
de  Janeiro.  The  American  Ambassador  to  Brazil, 
Herschel  V.  Johnson,  ranking  Embassy  officers, 
representatives  from  the  Department,  and  prin- 
cipal officers  of  the  consular  posts  in  Brazil  are 
meeting  to  discuss  subjects  of  common  interest, 
with  emphasis  on  consular  and  administrative 
matters.  This  conference  is  being  held  in  pursu- 
ance of  the  Department's  policy  of  bringing 
together  departmental  and  field  officers  fop 
discussion  of  mutual  problems. 

Representing  the  Department  are  the  following 
officers : 

William  P.  Hughes,  executive  director,  Bureau  of  Inter- 
American  Affairs 

Elbridge  Durbrow,  chief-designate.  Division  of  Foreign 
Service  Personnel 

William  K.  Ailshie,  special  assistant,  OflSce  of  Consular 

Principal  officers  from  consular  posts  attending 
the  conference  are : 

Julian  C.  Greenup,  consul  general,  Sao  Paulo 

V.  Lansing  Collins,  Jr.,  consul,  Porto  Alegre 

George  E.  Miller,  consul,  Recife 

Robert  C.  Johnson,  Jr.,  consul,  Salvador 

Arthur  G.  Parsloe,  consul,  Santos 

Williams  Beal,  vice  counsul,  Vit6ria 

George  T.  Colman,  consul,  BeWm 

Richard  A.  Godfrey,  vice  consul,  Fortaleza 


Department  of  State  Bulletin 

Technical  Assistance 

The  Department  of  State  annoimced  on  June  13 
that  the  following  United  States  delegation  has 
been  designated  to  attend  the  first  meeting  of  the 
United  Nations  Technical  Assistance  Conference 
which  convened  at  Lake  Success  on  June  12. 

United  States  Representative 

Willard  L.  Thorp,  Assistant  Secretary  for  Economic  Af- 
fairs, Department  of  State 

Deputy  United  States  Representative 

Walter  Kotschnig,  Director,  Office  of  United  Nations  Eco- 
nomic and  Social  Affairs,  Department  of  State 


Eleanor  Dennison,  Office  of  United  Nations  Economic  and 
Social  Affairs,  Department  of  State 

William  O.  Hall,  Director,  Office  of  International  Admin- 
istration and  Conferences,  Department  of  State 

Louis  K.  Hyde,  Jr.,  United  States  Mission  to  the  United 
Nations,  New  York 

Paul  W.  Jones,  Jr.,  Division  of  International  Administra- 
tion, Department  of  State 

In  recognition  of  the  need  for  a  broad  attack  on 
problems  of  economic  development,  the  President 
of  the  United  States,  in  his  inaugural  address  of 
January  20, 1949,  called  upon  all  countries  to  pro- 
vide technical  assistance  for  the  development  of 
underdeveloped  areas,  such  assistance  to  be  ren- 
dered where  practicable  through  the  United  Na- 
tions and  the  specialized  agencies  of  the  United 

After  the  Secretary-General  of  the  United  Na- 
tions, pui-suant  to  a  resolution  of  the  Economic 
and  Social  Council,  had,  in  May  1949,  issued  a 
report  on  the  extent  and  manner  in  which  the 
United  Nations  and  the  specialized  agencies  could 
contribute  to  a  technical  assistance  progi'am,  the 
Economic  and  Social  Council,  meeting  at  Geneva 
in  the  summer  of  1949,  studied  such  questions  as 
how  the  expanded  program  should  be  planned  and 
coordinated,  how  it  should  be  financed,  and  how 
it  should  be  administered. 

Arrangements  were  made,  and,  subsequently, 
unanimously  approved  by  the  members  of  the 
United  Nations  in  the  General  Assembly  in  the 
fall  of  1949,  for  annual  programs  of  technical 
assistance  to  be  planned  by  the  secretariats  of  the 
various  agencies  acting  together;  for  the  over-all 
program  to  be  financed  through  a  special  account 
to  be  established  by  the  United  Nations,  to  which 
all  governments  belonging  to  any  of  the  partici- 
pating organizations  would  be  invited  to  contrib- 
ute; for  this  fund  to  be  distributed  among  the 
organizations  on  the  basis  of  agreed  percentages ; 
and  for  the  respective  secretariats  to  have  respon- 
5ibility  for  administering  and  operating  the  pro- 
2;ram,  while  policy  control  would  be  vested  in  the 
Economic  and  Social  Council  and  ultimately  in 
-he  General  Assembly  of  the  United  Nations  and 
:he  conferences  or  governing  bodies  of  the 

The  forthcoming  Conference  will  be  primarily 

concerned  with  ascertaining  the  total  amount  of 
contributions  available  from  participating  gov- 
ernments for  the  execution  of  the  technical  assist- 
ance programs  of  the  United  Nations  and  the  spe- 
cialized agencies  during  the  first  year  of  its  opera- 
tion. The  Conference  must  also  give  final  consent 
to  plans  for  the  allotment  of  proportionate  shares 
of  the  total  amount  of  contributions  to  the  various 
participating  organizations. 

Plans  are  now  under  way  for  the  coordination 
of  bilateral  programs  to  be  carried  out  by  the 
United  States  with  those  of  the  United  Nations. 

Wlieat  Council 

The  Department  of  State  announced  on  June  16 
that  the  third  session  of  the  International  Wlieat 
Council  will  convene  at  London  on  June  19 
with  the  following  United  States  delegation  in 
attendance : 


Stanley  Andrews,  director.  Office  of  Foreign  Agricultural 
Relations,  Department  of  Agriculture 

Alternate  Delegate 

Elmer  F.  Kruse,  assistant  administrator  for  commodity 
operations.  Production  and  Marketing  Administra- 
tion, Department  of  Agriculture 


Maurice  M.  Benidt,  chief.  International  Wheat  Agreement 
Staff,  Production  and  Marketing  Administration,  De- 
partment of  Agriculture 

James  O.  Foster,  director.  Commodities  Division,  Office  of 
International  Trade,  Department  of  Commerce 

Francis  A.  Linville,  assistant  chief.  Economics  Resources 
and  Security  Staff,  Department  of  State 

Paul  O.  Nyhus,  agricultural  attach^,  American  Embassy, 

Adviser  and  Secretary 

Gordon  Eraser,  United  States  member  of  Executive  Com- 
mittee of  Wheat  Council,  London 

The  International  Wlieat  Council  was  estab- 
lished in  1949  pursuant  to  the  terms  of  the  Inter- 
national Wheat  Agreement  of  March  23,  1949,  an 
instrument  designed  to  assure  supplies  of  wheat 
to  importing  countries  and  markets  for  wheat  to 
exporting  countries  at  equitable  and  stable  prices. 
Administration  of  the  provisions  of  the  agreement 
is  the  primary  function  of  the  Council  which  is 
composed  of  the  39  exporting  and  importing 
countries  parties  to  the  agreement.  Each  coun- 
try may  be  represented  on  the  Council  by  a  dele- 
gate, an  alternate,  and  such  technical  advisers  as 
are  necessary. 

The  forthcoming  session  of  the  Council  will 
discuss  how  quantities  brought  into  the  agreement 
by  accessions  and  by  increase  of  quotas  shall  be 
apportioned  among  the  exporting  countries.  This 
apportionment  involves  agreement  among  the 
four  exporting  counties,  i.e.,  Australia,  Canada, 
France,  and  the  United  States. 

Ajnong  other  subjects  for  consideration  by  the 
third  session  of  the  Council  are:    review  of  the 

iuly  3,   1950 


operative  problems  connected  with  the  recording 
of  sales  and  the  reporting  of  the  status  of  quota 
fulfillment  to  members  by  the  Secretariat ;  review 
of  changes  in  the  rules  of  procedure  suggested  by 
the  Executive  Committee  and  determination  of 
powers  to  be  delegated  to  the  Executive  Commit- 
tee; election  of  members  of  the  Executive  Com- 
mittee for  the  crop  year  1950-51;  election  of  a 
chairman  and  vice  chairman ;  elaboration  of  a 
budget  for  1950-51;  and  the  time  and  place  of  the 
next  meeting  of  the  Council. 

Congress  for  Education  of  Deaf  and  Dumb 

The  Department  of  State  announced  on  June  5 
that  Leonard  M.  Elstad,  president  of  Gallaudet 
College,  Washington,  D.C.,  and  Maj.  Jerome  G. 
Sacks,  MSC,  assistant  chief  of  the  Clinical 
Psychology  Branch,  Office  of  the  Surgeon  General, 
Department  of  the  Army,  will  represent  the 
United  States  Government  at  the  International 
Congress  for  Education  of  the  Deaf  and  Dumb  at 
Groningen,  the  Netherlands,  beginning  June  5. 

The  Netherlands  Government  is  sponsoring  this 
Congress  in  commemoration  of  the  establishment 
160  years  ago  of  the  Royal  Institution  for  the 
Deaf  and  Dumb  in  Groningen. 

Teaching  by  ear  or  vibration,  by  talking  visibly, 
and  other  methods  of  improving  the  means  of 
communication  by  the  deaf  will  be  intensively 
studied  at  the  forthcoming  Congress.  Although 
considerable  progress  has  been  made  in  the  United 
States,  in  recent  years,  in  developing  improved 
methods  for  teaching  children  born  without  hear- 
ing to  speak,  in  many  other  countries  such  instruc- 
tion is  confined  to  lip  reading  and  sign  language. 

In  many  other  countries,  little  stress  is  placed 
on  the  education  of  deaf  students  after  the  com- 
pletion of  the  elementary  grades,  in  contrast  to 
the  United  States  where  the  deaf  are  urged  to 
complete  at  least  a  hig'h  school  education  and 
where  there  is  the  only  college  in  the  world  for 
deaf  students.  In  an  effort  to  find  means  of  rais- 
ing educational  standards  for  the  deaf  every- 
where, the  forthcoming  Congress  will  discuss  pro- 
grams of  vocational  education,  higher  education, 
and  out-of-school  education  for  the  deaf. 

Other  topics  which  have  a  close  correlation  to 
improvement  of  means  of  communication  by  the 
deaf  and  their  education  will  also  be  discussed. 
Among  the  topics  will  be:  the  testing  of  the  deaf; 
language  and  thinking — psychological  problems 
of  the  deaf ;  and  aftercare  of  the  deaf. 

Journees  Medicates 

The  Department  of  State  announced  on  June  8 
that  two  delegates  have  been  named  to  represent 
the  United  States  Government  at  the  24th  session 
of  the  Journees  Medicales  (Medical  Days  of  Brus- 
sels) convening  at  Brussels  on  June  10.  They  are: 
Col.  Robert  U.  Merikangas,  MC,  USA,  Chief  of 
Medicine,  97th  General  Hospital,  Frankfort,  Ger- 


many;  and  Walter  G.  Nelson,  Medical  Director, 
Public  Health  Service,  American  Embassy,  Paris, 

Annual  meetings  of  the  Journees  Medicales  are 
sponsored  by  the  Belgian  Government  to  bring 
together  distinguished  doctors  with  the  object  of 
keeping  the  practicing  physician  in  touch  with 
current  medical  research.  An  International  Expo- 
sition of  Sciences  and  Arts  as  applied  to  medicine, 
surgery,  pharmacy,  and  hygiene  will,  as  in  the 
past,  be  held  in  conjunction  with  the  24th  session. 
Representatives  of  the  United  States  Govern- 
ment have  participated  in  most  of  the  meetings  of 
this  organization  since  1932. 

U.S.  Representative  Named 

to  NAC  Board  for  Ocean  Shipping 

The  Department  of  State  announced  on  June  19 
that  Huntington  T.  Morse,  special  assistant  to  the 
administrator  of  the  Maritime  Administration  of 
the  Department  of  Commerce,  has  been  appointed 
the  United  States  representative  on  the  North  At- 
lantic Planning  Board  for  Ocean  Shipping.  Mr. 
Morse  will  fill  this  post  in  addition  to  his  other 
present  duties. 

At  its  fourth  session  in  London,  on  May  18,  the 
North  Atlantic  Council  announced  that  it  had 
established,  in  furtherance  of  article  9  of  the 
Treaty,  a  North  Atlantic  Planning  Board  for 
Ocean  Shipping.^  This  Board  will  report  directly 
to  the  Council  and  will  work  in  close  cooperation 
with  other  bodies  of  the  Treaty  organization  in  all 
matters  relating  to  merchant  shipping  in  defense 

Achieving  a  Community  Sense — Continued from.'page  17 
overcome  the  obstacles  in  our  path  must  be  con- 
sonant with  our  aims,  and  must  accord  with  our 
deepest  moral  sense. 

The  fundamental  moral  value  on  which  our 
society  rests  is  the  brotherhood  of  man.  To  the 
extent  that  our  actions  abroad,  and  our  relations 
among  ourselves  at  home,  are  expressive  of  this 
humanist  principle,  we  shall  create  a  good  that 
will  live  after  us. 

It  is  not  in  the  words  we  profess,  but  in  what  we 
do,  and  in  how  we  do  it,  that  our  ends  will  be 

Justice  Holmes  expressed  it: 

Man  Is  born  a  predestined  idealist,  for  he  is  born  to  act. 
To  act  is  to  alfirm  the  worth  of  an  end,  and  to  persist  in 
aflirming  the  worth  of  an  end  is  to  make  an  ideal. 

'  Bulletin  of  May  29,  1950,  p.  830. 

Department  of  State  Bulletin 

The  United  States  in  the  United  Nations 

[June  24-30] 

Security  Council 

The  Security  Council  on  June  27  adopted  a 
resolution,  introduced  by  the  United  States,  rec- 
ommending that  United  Nations  members  "fur- 
nish such  assistance  to  the  Republic  of  Korea  as 
may  be  necessary  to  repel  the  armed  attack  and  to 
restore  international  peace  and  security  in  the 
area."' '  The  resolution,  opposed  only  by  Yugo- 
slavia, received  seven  affirmative  votes.  The 
Soviet  representative  was  not  present.  Egypt 
and  India  stated  tliat  they  had  not  received  in- 
structions from  their  Governments  and,  therefore, 
could  not  participate  in  the  vote.  However,  at  a 
Council  meeting  on  June  30,  the  Indian  repre- 
sentative announced  that  his  Government  accepted 
the  resolution,  while  the  Egyptian  representative 
said  that  Egypt  would  have  abstained  in  the  vote, 
because  it  considered  that  the  Korean  situation  is 
just  another  element  of  the  East-West  conflict. 

In  presenting  the  resolution,  Warren  E.  Austin 
of  the  United  States  called  it  a  "logical  conse- 
quence" of  the  Council's  resolution  of  June  25  ^  and 
of  the  North  Korean  authorities'  failure  to  observe 
it.  Ambassador  Austin  read  President  Truman's 
statement  of  June  27  ^  announcing  that  United 
States  air  and  sea  forces  had  been  ordered  "to  give 
the  Korean  Government  troops  cover  and  sup- 
port." In  concluding  his  remarks.  Ambassador 
Austin  said  that  the  "keynote  of  the  resolution  and 
my  statement  and  the  significant  characteristic  of 
the  action  taken  by  the  President  is  support  of  the 
United  Nations  purposes  and  principles — in  a 
word  'peace'."  * 

Two  Yugoslav  resolutions  were  defeated  by  the 
Council.  At  the  emergency  meeting  on  June  25, 
Yugoslavia  proposed  that  the  Council  call  for 
cessation  of  hostilities  and  withdrawal  of  forces 
and  "invite  the  Government  of  North  Korea  to 
state  its  case  before  the  Security  Council."  At  the 
June  27  meeting,  Yugoslavia  presented  a  resolu- 
tion by  which  the  Council  would  renew  its  call 

'  See  ante  p.  7. 
'  See  ante  p.  4. 
'  See  ante  p.  5. 
*  See  ante  p.  6. 

July  3,   1950 

for  cessation  of  hostilities,  invite  the  North 
Koreans  to  send  a  representative  to  the  United 
Nations,  and,  in  addition,  initiate  a  procedure  of 

Economic  Commission  for  Latin  America 

The  Economic  Commission  for  Latin  America, 
which  held  its  third  session  at  Montevideo,  Uru- 
guay, on  June  5-21,  adopted  a  number  of  resolu- 
tions dealing  with  problems  of  economic  develop- 
ment, technical  assistance,  immigration,  foreign 
investments,  foreign  trade,  and  agricultural  credit. 
The  most  important  of  the  resolutions,  one  on 
economic  development  and  anticyclical  policy,  con- 
tains a  declaration  of  general  principles.  The 
resolution  was  strongly  endorsed  by  the  17  Latin 
American  delegations  present  (Costa  Rica,  Peru, 
and  Venzuela  were  not  represented)  and  ap- 
proved by  the  French,  Netherlands,  and  United 
Kingdom  delegations.  The  resolution  is  so  sweep- 
ing in  character,  however,  that  the  United  States 
delegation  felt  compelled  to  state  that,  although 
it  would  vote  in  favor  of  the  resolution,  it  did  so 
"subject  to  study  by  its  government  to  determine 
whether  there  is  anything  in  the  resolution  which 
may  not  be  in  harmony  with  United  States  eco- 
nomic policy  and  international  commitments." 

Trusteeship  Council 

Discussion  of  the  annual  reports  on  the  trust 
territories  of  British  and  French  Togoland  was 
completed  by  the  Trusteeship  Council  on  June  29, 
and  a  committee  consisting  of  Belgium,  Iraq,  the 
Philippines,  and  the  United  States  was  appointed 
to  draft  the  Council  reports  on  these  territories. 

Excejit  for  an  annex  including  individual  opin- 
ions of  Council  members,  examination  of  the 
drafting  committee's  report  on  Australia's  annual 
report  on  New  Guinea  was  concluded  on  June  28. 
Approval  was  given  to  the  drafting  committee's 
report  on  New  Zealand's  annual  report  on  Western 
Samoa  on  June  29.  On  that  day,  the  Council  also 
approved  nine  resolutions  submitted  by  its  ad  hoc 
Committee  on  Petitions  dealing  with  petitions 
from  New  Guinea  and  the  British  and  French 


General  Policy  Page 

North  Korean  Forces  Invade  South  Korea: 
U.S.   Presents  Cease-Fire  Resolution  to  Se- 
curity Council.     Statement  by  Ambassador 

Ernest  A.  Gross 3 

U.S.  Air  and  Sea  Forces  Ordered  Into  Sup- 
porting Action.  Statement  by  the  Presi- 
dent; Remarks  by  Secretary  Acheson  ...  5 
U.S.  Asks  Security  Council  To  Assist  in  Re- 
pelling Attack.  Statement  by  Ambassador 
Warren  R.  Austin 6 

The  Korean  Experiment  in  Representative 
Government.  Statement  by  John  Foster 
Dulles 12 

Achieving  a  Community  Sense  Among  Free 
Nations — A  Step  Toward  World  Order. 
Address  by  Secretary  Acheson 14 

Keeping    Peace   in   the    Caribbean    Area.     By 

Edward  A.  Jamison 18 

Upholding  Principles  and  Rights  of  Others  in 
the  Process  of  International  Negotiation. 
By  Philip  C.  Jessup,  Ambassador  at  Large  .      26 

Army  Attach^,  Declared  Persona  Non  Grata, 

Withdrawn  From  Rumania 29 

Rumania  Protests  Against  Travel  Restrictions 
on  Personnel  in  U.S.  Statement  by  Secre- 
tary Acheson •   •     •    •     30 

Treaty  Information 

Soviet  Violations  of  Treaties  and  Agreements.    .        8 


Tax  Treaty  Negotiations  To  Open  With  Israel  .      13 
The  Need  for  an  International  Trade  Organiza- 
tion.    Views    of    Howard    W.    McGrath, 
Attorney  General 31 

The  United  Nations  and 
Specialized  Agencies 

The  United  States  in  the  United  Nations  ...      39 

International  information  and 
Cultural  Affairs 

Commission   on   Migratory   Labor.     Executive 

Order  10129 33 

International  Organizations  and 

Calendar  of  Meetings 34 

U.S.  Delegations: 

Methods  and   Techniques  of  Adult   Educa- 
tion     36 

Ornithological    Congress 36 

Consular  Conference 36 

Technical  Assistance 37 

Wheat  Council 37 

Congress  for  Education  of  Deaf  and  Dumb  .  38 

Journ^es  Medical es 38 

U.S.  Representative  Named  to  Nac  Board  for 

Ocean  Shipping 38 


Edward  A.  .Tamison,  author  of  the  article  on  keeping  peace  in  the 
Americas,  is  ofiicer  in  charge,  Special  Political  Affairs,  Office  of  Re- 
gional American  Affairs. 


tJne/  ^eha/yi7}teni/  ^ t/taie^ 



Address  by  Secretary  Acheson '^^^^^'     43 

Statement  by  John  Foster  Dulles 49 


PROGRAM      FOR      1951       •      Statement    by    Secretary 
Acheson 31 

LABOR'S   ROLE   IN  WORLD   AFFAIRS      •      By  Bernard 

Wiesman 54 

For  complete  contents  see  back  cover 

Vol.  XXIII,  No.  575 
July  10,  1950 

^ENX    o^ 


^Ae  Qlefi€t/)tim,&rvt  jCL  ^ate    V^  W  i  1  \D  L 1  i  1 

Vol.  XXIII,  No.  575  •  Publication  3906 
July  10,  1950 

For  sale  by  the  Superintendent  of  Documents 

U.S.  Government  Printing  Office 

Washington  25,  D.C. 


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Single  copy,  20  cents 

The  printing  of  this  publication  has 
been  approved  by  the  Director  of  the 
Bureau  of  the  Budget  (February  18,  1949). 

Note:  Contents  of  this  publication  are  not 
copyrighted  and  items  contained  herein  may 
be  reprinted.  Citation  of  the  Department 
OF  State  Bulletin  as  the  source  will  be 

Tlie  Department  of  State  BULLETIN, 
a    weekly  publication  compiled  and 
edited  in  the  Division  of  Publications, 
Office  of  Public  Affairs,  provides  the 
public    and    interested    agencies    of 
the  Government  with  information  on 
developments  in  the  field  of  foreign 
relations  and  on  the  work  of  the  De- 
partment of  State  and   the   Foreign 
Service.      The     BULLETIN     includes 
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ment, and  statements  and  addresses 
made   by   the   President  and  by  the 
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of  the  Department,  as  well  as  special 
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United  States    is   or   may   become   a 
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Publications  of  the  Department,  as 
well  as  legislative  material  in  the  field 
of  international  relations,  are  listed 



Address  hy  Secretary  Acheson'^ 

I  would  like  to  review  with  you  the  facts  of  the 
situation  which  I  am  sure  is  uppermost  in  your 
minds — the  events  which  have  been  taking  place 
and  are  now  going  on  in  Korea. 

I  think  you  will  agree  that  this  has  been  what 
newspaper  men  call  a  fast-breaking  story. 

The  immediate  events  of  the  story  go  back  less 
than  5  days.  On  Saturday  afternoon — it  was  just 
before  daybreak  of  Sunday  morning  in  Korea — 
without  warning  and  without  provocation,  Com- 
munist forces  of  the  north  launched  a  coordinated 
full-scale  assault  on  the  Republic  of  Korea.  After 
heavy  artillery  fire,  Communist  infantry  began 
crossing  the  38th  parallel  at  three  points,  while 
amphibious  forces  were  landing  at  several  points 
on  the  east  coast,  some  20  miles  to  the  south. 

First  reports  to  reach  the  capital  at  Seoul,  30 
miles  below  the  38th  parallel,  were  fragmentary 
and  confused.  There  had  been  small  border 
forays  on  many  previous  occasions,  and  the  mag- 
nitude of  this  attack  was  not  immediately  cleai'. 

Our  Ambassador  at  Seoul,  John  Muccio,  imme- 
diately got  in  touch  with  Korean  Army  headquar- 
ters, through  our  Military  Advisory  Group,  and, 
as  soon  as  it  became  evident  that  this  was  more 
than  another  border  incident,  he  cabled  the  State 

Ambassador  Muccio's  cable  reached  the  State 
Department  code  room  at  9 :  26  Saturday  night, 
having  crossed  an  inquiry  the  Department  had 
sent  to  him  a  few  minutes  before,  based  on  the 
first  press  flash  on  the  action. 

'  Delivered  before  the  17th  annual  convention  of  the 
American  Newspaiser  Guild,  Washington,  D.  C,  on  June  29 
and  released  to  the  press  on  the  same  date. 

Within  a  matter  of  minutes,  the  message  was 
decoded  and  the  Department  was  alerted  for 

By  10 :  30  p.m.,  our  Assistant  Secretary  for  Far 
Eastern  Affairs,  Dean  Rusk,  and  the  Secretary  of 
the  Army,  Frank  Pace,  were  conferring  at  the 

By  11:00,  Secretary  Pace  had  alerted  the  De- 
partment of  Defense,  a  full  operating  staff  was  on 
duty  at  our  Bureau  of  Far  Eastern  Affairs,  and  I 
had  discussed  the  situation  by  phone  with  the 

Action  developed  along  two  fronts  in  the  State 
Department  during  the  night. 

One  group  of  Department  officers  worked 
through  the  night  preparing  for  a  meeting  of  the 
Security  Council  which  we  had  immediately  re- 
quested. The  United  Nations  had  established  the 
Republic  of  Korea  and  had,  since  early  1948,  main- 
tained a  Commission  in  Korea.  We,  therefore, 
felt  a  primary  responsibility  to  bring  this  matter 
to  the  immediate  attention  of  the  United  Nations. 

By  Sunday  afternoon,  within  20  hours  of  the 
time  the  first  official  word  of  this  invasion  was  re- 
ceived here,  the  Security  Council  had  taken  its 
first  action.  Representatives  of  10  member  na- 
tions of  the  Security  Council  had  been  assembled 
from  their  Sunday  places  of  rest — the  eleventh 
was  the  representative  of  the  Soviet  Union,  who 
stayed  away.  After  hearing  the  report  of  the 
United  Nations  Commission  concerning  the  un- 
provoked act  of  aggression,  the  Security  Council 
passed  a  resolution  which  called  for  an  immediate 
end  to  the  fighting  and  for  the  assistance  of  all 
members  in  restoring  the  peace.  All  actions 
taken  by  the  United  States  to  restore  the  peace  in 
Korea  have  been  under  the  aegis  of  the  United 

Another  group  of  Department  officers,  mean- 
while, were  working  with  their  colleagues  in  the 

Jo/y   TO,   7950 


Defense  Department,  consulting  on  measures  to 
be  taken  within  the  framework  of  existing  policy 
and  plans  and  the  emergency  orders  of  the 

Complete  Study  Ready  for  President 

The  President  flew  to  Washington.  By  the 
time  he  had  arrived,  at  7 :  20  Sunday  evening,  com- 
pleted staff  work  and  recommendations  had  been 
prepared  and  were  laid  before  him.  The  De- 
partments of  State  and  Defense  had  worked  as 
one  department,  with  complete  agreement  and  co- 
ordination of  effort. 

During  Sunday  night  and  early  Monday  morn- 
ing, actions  flowing  from  the  conference  with  the 
President  were  set  in  motion.  General  MacAr- 
thur  was  authorized  to  respond  at  once  to  urgent 
appeals  from  the  Govermnent  of  Korea  for  addi- 
tional supplies  of  ammunition  and  in  a  matter  of 
hours  was  flying  into  Korea  loaded  transport 
planes  with  fighter  protection  to  assure  their  safe 
arrival.  At  about  the  same  time,  the  Seventh 
Fleet  with  all  men  aboard  was  steaming  north  out 
of  Subic  Bay,  to  be  on  hand  in  case  of  need. 

It  became  possible  on  Monday  to  get  a  clearer 
picture  of  the  military  situation,  by  sifting  the 
fragmentary  and  sometimes  conflicting  reports 
we  had  been  receiving  from  many  different 

From  the  size  and  speed  of  the  Communist  at- 
tack, it  was  evident  that  it  was  a  premeditated  ac- 
tion ;  that  it  had  been  carefully  plotted  for  many 
weeks  before.  The  initial  thrust,  supported  by 
planes  and  tanks,  had  clearly  caught  the  Korean 
Government  troops  by  surprise.  Although  the 
defending  forces  rallied  and  launched  several 
small  counteractions,  it  did  not  appear  that  they 
were  in  a  position  to  bar  the  tank-and-plane-sup- 
IJorted  Communist  thrust  down  the  corridor  to  the 
capital  city. 

By  Monday  night,  in  the  light  of  this  situation, 
recommendations  were  prepared  by  the  President's 
civil  and  military  advisers  on  the  course  of  action 
to  be  taken.  In  preparing  these  recommendations, 
it  was  clear  to  all  concerned  that  this  act  of  ag- 
gression had  brought  in  issue  the  authority  and, 
indeed,  the  continued  existence  of  the  United  Na- 
tions and  the  security  of  the  nations  of  the  free 
world,  including  the  United  States  and  its  forces 
in  the  Pacific.  These  recommendations  were  pre- 
pared with  the  sober  realization  of  the  issues  in- 

volved and  with  the  full  agreement  of  all  the 
President's  advisers. 

As  in  many  other  situations  which  have  arisen 
in  the  years  in  which  I  have  served  as  Under 
Secretary  and  Secretary,  the  President  was  faced 
with  difficult  decisions  which  had  to  be  made 
quickly.  And  as  in  the  previous  cases,  the  Presi- 
dent assumed  the  responsibility,  made  the  deci- 
sions, and  has  given  leadership  and  direction  to 
the  entire  action  of  the  Government  of  the  United 

Consultations  with  Congressional  leaders  on 
Tuesday  morning  demonstrated  a  complete  unity 
in  understanding  the  problem  and  the  course  of 
action  which  needed  to  be  taken. 

At  Tuesday  noon,  the  President  announced  the 
actions  which  this  Government  would  take  to  sup- 
port the  United  Nations  and  uphold  a  rule  of  law 
in  the  Pacific  area. 

In  the  interval  between  the  meetings  of  the  Se- 
curity Council  on  Sunday  and  again  on  Tuesday, 
the  United  Nations  Commission  on  Korea  had  con- 
firmed tlie  fact  that  the  Communist  authorities  in 
North  Korea  had  ignored  the  cease-fire  order  and 
defied  the  authority  of  the  United  Nations.  There- 
fore, the  Security  Council  recommended  at  its 
meeting  Tuesday  night  that  member  nations  give 
aid  to  the  Rei^ublic  of  Korea  and  help  to  restore 
peace  and  security  to  the  area. 

Yesterday — i  days  after  the  fighting  began — the 
fall  of  Seoul  was  confirmed,  but  American  air 
and  sea  support  for  Korean  Government  troops 
was  beginning  to  make  itself  felt,  and  peace-loving 
nations  the  world  over  were  able  to  hope  that  this 
act  of  brutal,  unprovoked,  and  naked  aggression 
would  not  be  allowed  to  succeed. 

Historical  Background 

It  may  be  useful  at  this  point  to  review  briefly 
the  background  of  recent  history  against  which 
the  present  act  of  aggi'ession  against  Korea  is  to 
be  considered. 

Since  the  nineteenth  century,  American  mission- 
aries, doctors,  and  educators  have  been  especially 
active  in  Korea,  so  that  through  the  years  of 
Japanese  occupation,  which  began  in  the  first  dec- 
ade of  this  century,  the  Korean  people  came  to 
regard  the  United  States  as  a  symbol  of  the  free- 
dom and  independence  to  which  they  aspired. 

In  the  Cairo  Declaration  of  December  1943,  the 
United  States,  the  United  Kingdom,  and  China 
pledged  their  determination  that  Korea  would  be- 


DeparlmenI  of  Sfafe  Bulletin 

come  free  and  independent.  This  pledge  was  re- 
affirmed in  the  Potsdam  Declaration  of  July  26, 
1945.  and  was  subscribed  to  by  the  Soviet  Union 
when  it  entered  the  war  against  Japan  13  days 

The  defeat  of  Japan  made  it  possible  for  Korea 
to  look  forward  to  the  realization  of  its  desire  for 

On  the  day  following  the  first  Japanese  offer 
of  surrender,  which  was  made  on  August  10,  1945, 
the  Secretary  of  War  submitted  to  the  Secretary 
of  State  a  plan  for  the  arrangements  to  be  fol- 
lowed in  accepting  the  surrender  of  Japanese 
troops  in  various  places.  To  meet  the  immediate 
problem,  it  was  proposed  that  the  nearby  Soviet 
troops  accept  the  surrender  of  Japanese  armed 
forces  in  Korea  down  to  the  38th  parallel  and  that 
American  troops  be  brought  up  from  Okinawa 
and  the  Philippines  to  accept  the  surrender  of 
Japanese  troops  in  the  southern  part  of  Korea. 
This  arrangement  was  approved  by  the  Joint 
Chiefs  of  Staff,  the  State-War-Navy  Coordinating 
Committee,  and  the  President  and,  after  it  had 
been  accepted  by  Generalissimo  Stalin,  was  in- 
corporated in  the  first  general  order  to  be  issued 
by  General  AlacArthur  as  Supreme  Commander 
for  the  Allied  Powers  on  September  2, 1945. 

Soviet  troops  had  occupied  the  northern  part 
of  Korea  on  August  12.  The  Soviet  desire  and 
intention  to  put  troops  into  Korea  had  been  made 
evident  at  the  Potsdam  discussions,  1  month  be- 
fore. On  September  8,  American  troops  had  been 
landed  to  accept  the  surrender  of  the  Japanese  in 
the  southern  part  of  Korea,  4ind  we  began  efforts 
to  negotiate  with  the  Soviet  Union  for  the  unifi- 
cation and  independence  of  the  country. 

We  soon  found  that  the  Soviet  Union  consid- 
ered the  38th  parallel  not  as  a  line  drawn  on  a 
map  for  the  sake  of  administrative  convenience 
but  as  a  wall  around  their  preserve. 


At  the  Moscow  meeting  of  Foreign  Ministers  in 
December  1945,  a  joint  commission  for  the  unity 
and  independence  of  Korea  was  agreed  to  between 
the  Soviet  Union  and  ourselves,  but  we  found  that 
every  effort  to  give  effect  to  this  agreement  and 
i:irevious  agreements  was  blocked  by  Soviet  in- 

The  United  States  was  unwilling  to  permit  this 
situation  to  delay  further  the  realization  of  Korean 

This  Government  therefore  laid  the  question 
of  Korean  independence  before  the  United  Na- 
tions. The  General  Assembly  of  the  United  Na- 
tions, in  November  1947,  called  for  an  election  in 
Korea  under  the  observation  of  a  United  Nations 
Commission,  to  choose  a  representative  national 
assembly  for  the  purpose  of  drafting  a  democratic 
constitution  and  establishing  a  national  gov- 

The  Soviet  Union  refused  to  allow  the  United 
Nations  Commission  to  enter  its  zone.  Conse- 
quently, the  right  of  the  Korean  people  to  par- 
ticipate in  a  free  election  to  establish  a  free  govern- 
ment was  confined  to  southern  Korea.  The 
election  was  held  there,  and  the  Government 
of  the  Republic  of  Korea  was  established  on 
August  15,  1948. 


It  has  been  the  aim  of  the  United  States  to  pro- 
vide the  people  of  the  Republic  of  Korea  with  suf- 
ficient assistance  and  support  to  enable  them  to 
progress  through  their  own  efforts  toward  free- 
dom and  independence.  The  transfer  of  functions 
from  the  United  States  Army  Military  Govern- 
ment to  Korean  agencies  was  carried  out 
progressivelj'  from  the  moment  of  the  establish- 
ment of  the  Republic. 

The  United  States  has  continued  to  give  assist- 
ance and  support  to  the  Republic,  both  within  the 
framework  of  the  United  Nations  and  directly. 
We  have  trained  and  equipped  Korean  defense 
forces,  we  have  extended  economic  aid  and  tech- 
nical advice,  fostered  exchange  of  students  and 
professors,  and,  in  general,  done  everything  pos- 
sible to  help  the  people  of  Korea  in  establishing 
a  democratic  jiolitical  and  economic  structure  re- 
sponsive to  their  needs. 

The  Government  of  the  Republic  of  Korea  was 
accepted  by  the  United  Nations,  in  December  1948, 
as  the  validly  elected,  lawful  Government  of  the 
area  in  which  elections  were  permitted — and  the 
only  such  Government  in  Korea.  The  General 
Assembly  established  a  reconstituted  Commission 
to  continue  to  work  for  unification  and  a  repre- 
sentative government  for  the  entire  country. 

The  United  States  recognized  the  new  govern- 
ment on  January  1,  1949.  Many  other  members 
of  the  United  Nations  have  since  done  the  same. 
Membership  of  the  Republic  of  Korea  in  the 
United  Nations  has  been  blocked  by  the  Soviet 

July   10,   1950 



Meanwhile,  the  38th  parallel  had  become  a  part 
of  the  Iron  Curtain.  Behind  that  curtain,  the 
Soviet  Union  established  a  Communist  regime. 
The  formal  creation  of  this  regime  was  proclaimed 
on  September  9, 1948,  as  the  so-called  "Democratic 
People's  Republic  of  Korea,"  claiming  jurisdiction 
over  the  entire  country.  This  regime  has  lived, 
as  it  was  created,  in  complete  defiance  of  the 
United  Nations. 

The  great  single  fact  which  stands  out  from  this 
summary  history  is  that  a  peaceful  people  ruled 
by  a  sovereign  independent  government  of  their 
own  choosing,  brought  into  being  by  the  United 
Nations  and  recognized  by  the  great  majority  of 
the  free  nations  of  the  world,  was  attacked  in  a 
cynical  and  brutal  act  of  aggression. 

We  are  confronted  with  a  direct  challenge  to 
the  United  Nations.  Whether  this  organization, 
which  embodies  our  hopes  for  an  international 
order  based  on  peace  with  justice  and  freedom, 
can  survive  this  test  will  depend  upon  the  vigor 
with  which  it  answers  the  challenge  and  the  sup- 
port which  it  receives  from  free  nations. 

Free  Nations  Answer  Aggression 

The  President  has  enunciated  the  policy  of  this 
Government  to  do  its  utmost  to  uphold  the  sanctity 
of  the  Charter  of  the  United  Nations  and  the  rule 
of  law  among  nations.  We  are,  therefore,  in  con- 
formity with  the  resolutions  of  the  Security  Coun- 
cil of  June  25  and  June  27,  giving  air  and  sea 
support  to  the  troops  of  the  Korean  Government. 
This  action,  pursuant  to  the  Security  Council  reso- 
lutions, is  solely  for  the  purpose  of  restoring  the 
Republic  of  Korea  to  its  status  prior  to  the  in- 
vasion from  the  north  and  of  reestablishing  the 
peace  broken  by  that  aggression. 

In  order  that  the  Communist  movement  may 
not  further  threaten  the  security  of  the  Pacific 
area  by  force  of  arms,  we  shall  increase  military 
assistance  to  the  Philippines  and  to  the  forces  of 
France  and  the  Associated  States  in  Indochina. 

The  President  has  also  ordered  the  Seventh 
Fleet  to  prevent  any  attack  on  Formosa,  and  we 
have  called  upon  the  Chinese  Government  on 
Formosa  to  cease  all  air  and  sea  operations  against 
the  mainland.  This  action  is  not  intended  to 
determine  the  future  status  of  Formosa,  which 

can  be  settled  only  upon  the  restoration  of  peace 
and  security  in  the  Pacific,  a  peace  settlement  with 
Japan,  or  consideration  by  the  United  Nations. 

As  a  further  measure  toward  the  restoration  of 
peace,  we  have,  through  our  Embassy  in  Moscow, 
asked  the  Soviet  Government  to  exercise  its  in- 
fluence with  the  North  Korean  authorities  for  the 
withdrawal  of  the  invading  forces  and  the  cessa- 
tion of  hostilities  in  Korea. 

In  conclusion,  the  action  of  the  United  States 
Government  in  Korea  is  taken  in  support  of  the 
authority  of  the  United  Nations.  It  is  taken  to 
restore  peace  and  security  to  the  Pacific  area. 

It  is  taken  in  the  conviction  that  peace  and 
security  cannot  be  obtained  by  sacrificing  the  in- 
dependence of  nations  to  aggression. 

Free  men  the  world  over  have  spoken  out  with 
one  voice  since  this  dawn  attack  was  launched  5 
days  ago.  They  endorse  our  resolve  and  stand 
with  us  in  support  of  the  United  Nations.  Those 
Governments  in  a  position  to  provide  armed  forces 
to  assist  in  the  support  of  the  Republic  of  Korea 
are  already  taking  steps  to  provide  that  support. 

It  is  now  clear  to  all — if  indeed,  it  was  not  clear 
before — that  free  nations  nmst  be  united,  they 
must  be  determined,  and  they  must  be  strong,  if 
they  are  to  preserve  their  freedom  and  maintain 
a  righteous  peace.     There  is  no  other  way. 


[Released  to  the  press  hy  the  White  Bouse  June  30] 

At  a  meeting  with  Congressional  leadere  at  the 
White  House  this  morning,  the  President,  together 
with  the  Secretary  of  Defense,  the  Secretary  of 
State,  and  the  Joint  Chiefs  of  Staff,  reviewed  the 
latest  developments  of  the  situation  in  Korea. 

The  Congressional  leaders  were  given  a  full 
review  of  the  intensified  military  activities. 

In  keeping  with  the  United  Nations  Security 
Council's  request  for  support  to  the  Republic  of 
Korea  in  repelling  the  North  Korean  invaders  and 
restoring  peace  in  Korea,  the  President  announced 
that  he  had  authorized  the  United  States  Air  Force 
to  conduct  missions  on  specific  military  targets  in 
Northern  Korea,  wherever  militarily  necessary, 
and  had  ordered  a  naval  blockade  of  the  entire 
Korean  coast. 

General  MacArthur  has  been  authorized  to  use 
certain  supporting  ground  units. 


Deparimeni  of  Sfafe  Bulletin 


[Released  to  the  press  July  2] 

On  June  29  and  30,  the  Chinese  Qovernment  informed 
the  Ooveniniciit  of  the  United  States  of  the  willinciness  of 
the  Chinese  Qovernment  to  send  land  troops  to  South 
Korea  to  assist  in  the  operations  now  going  on  in  that 
country.  The  Chinese  Qovernment  asked  for  the  opinion 
of  the  United  States  Government  on  this  matter.  The 
aide-mimoires  received  from  the  Chinese  Qovernment 

Aide-memoire  of  June  29 

The  Government  of  the  Eepublic  of  China  re- 
ceived today  a  communication  from  the  Secretary- 
General  of  the  United  Nations  requesting  it,  in 
accordance  with  the  resohition  adopted  by  the 
Security  Council  on  June  27, 1960,  to  furnish  such 
assistance  to  the  Republic  of  Korea  as  may  be 
necessary  to  help  repel  the  armed  attack  from 
North  Korea.  The  Chinese  Republic  is  willing 
to  send  land  troops  to  South  Korea  to  assist  in  the 
operations  for  the  purpose.  The  Chinese  Govern- 
ment will  be  glad  to  be  apprised  of  the  opinion  of 
the  United  States  Government  at  its  earliest  con- 
venience. In  view  of  the  urgent  situation  in  South 
Korea,  the  Chinese  Government  is  instructing  the 
Chief  of  the  Chinese  Mission  in  Japan  to  approach 
General  MacArthur  and  inquire  about  the  pos- 
itive measures  which  may  be  desired. 

Aide-memoire  of  June  30 

The  Chinese  Government  will  make  available 
for  use  in  South  Korea  to  repel  the  armed  attack 
of  North  Korea  one  army  of  seasoned  troops  of 
approximately  33,000  men  suitable  for  operations 
in  plains  or  hilly  terrain. 

These  troops  carry  the  best  equipment  at  China's 

For  the  transportation  of  these  troops  the 
Chinese  Government  will  provide  20  air  trans- 
ports of  the  type  of  C-46  ancl,  if  necessary,  can  give 
a  reasonable  amount  of  air  cover.  If  the  troops 
are  to  be  transported  by  sea,  the  Chinese  Govern- 
ment can  provide  a  moderate  amount  of  naval 

These  troops  can  be  ready  for  embarkation  in 
five  days. 

The  United  States  Qovernment,  icithont  assuming  in 
any  way  to  speak  for  the  United  Nations,  expressed  its 
opinion  to  the  Chinese  Qovernment  on  July  1  in  the  fol- 
loiving  terms. 

In  response  to  the  request  contained  in  the 
Chinese  Embassy's  Aide-Memoire  of  June  29, 
1950,  the  appropriate  authorities  of  the  Govern- 
ment of  the  United  States  have  given  considera- 
tion to  the  expression  of  willingness  on  the  part 

of  the  Government  of  the  Republic  of  China  to 
furnish  ground  forces  for  service  in  Korea  in  sup- 
port of  the  United  Nations. 

The  Secretary  of  State  desires  to  inform  His 
Excellency  the  Ambassador  of  the  Republic  of 
China  of  the  deep  appreciation  of  the  United 
States  Government  for  this  prompt  and  substan- 
tial demonstration  of  support  for  the  United 
Nations  on  the  part  of  the  Government  of  the 
Republic  of  China.  In  light,  however,  of  the 
threat  of  invasion  of  Taiwan  by  Communist  forces 
from  the  mainland,  a  threat  repeated  in  the  last 
day  or  so  by  spokesmen  for  the  Chinese  Com- 
munist regime  in  Peiping,  it  is  the  view  of  the 
Government  of  the  United  States  of  America  that 
it  would  be  desirable  for  representatives  of  Gen- 
eral MacArthur's  Headquarters  to  hold  dis- 
cussions with  the  Chinese  military  authorities  on 
Taiwan  concerning  the  plans  for  the  defense  of 
the  island  against  invasion  prior  to  any  final  de- 
cision on  the  wisdom  of  reducing  the  defense  forces 
on  Taiwan  by  transfer  of  troops  to  Korea.  It 
is  understood  that  General  MacArthur's  Head- 
quarters will  be  in  communication  with  the  ap- 
propriate Chinese  military  authorities  on  Taiwan 
with  a  view  to  the  dispatch  from  Tokyo  of  repre- 
sentatives of  General  MacArthur's  Headquarters 
for  this  purpose. 


[Released  to  the  press  June  Z9'\ 

The  American  Embassy  at  Moscow  on  June  27, 
1950,  communicated  with  the  Soviet  Foreign  Of- 
fice in  regard  to  the  invasion  of  the  Republic  of 
Korea  by  North  Korean  armed  forces. 

The  Embassy  called  to  the  attention  of  the  So- 
viet Foreign  Office  the  fact  that  forces  of  the 
North  Korean  regime  had  crossed  the  38tli  paral- 
lel and  had  invaded,  in  force,  the  territory  of  the 
Republic  of  Korea  at  several  points.  It  was  also 
pointed  out  that  the  refusal  of  the  representative 
of  the  Soviet  Union  to  attend  the  Security  Coun- 
cil meeting  in  New  York  despite  the  clear  threat  to 
the  peace  and  despite  the  obligations  of  a  Council 
member  under  the  United  Nations  Charter  re- 
quired the  Government  of  the  United  States  to 
bring  this  matter  directly  to  the  attention  of  the 
Government  of  the  U.S.S.R. 

The  Embassy  concluded  by  calling  attention  to 
the  universally  known  close  relations  between  the 
Soviet  Union  and  the  North  Korean  regime  and 
stated  that  the  United  States  Government  was 
asking  assurances  that  the  Soviet  Union  would 
disavow  responsibility  for  this  unwarranted  and 
unprovoked  attack  and  that  it  would  use  its  influ- 
ence with  the  authorities  of  North  Korea  to  with- 
draw their  invading  forces  at  once. 

Ambassador  Alan  G.  Kirk  today  was  read  the 

Ju/y  10,  1950 


following  statement  by  Deputy  Soviet  Foreign 
Minister  Andrei  Gromyko : 

In  connection  with  the  statement  of  the  Government  of 
the  United  States  of  America  transmitted  by  you  on  June 
27,  the  Soviet  Government  has  instructed  me  to  state  the 
following : 

1.  In  accordance  with  facts  verified  by  the  Soviet  Gov- 
ernment, the  events  talking  place  in  Korea  were  provoked 
by  an  attacli  by  forces  of  the  South  Korean  authorities 
on  border  reuions  of  North  Korea.  Therefore  the  respon- 
sibility for  these  events  rests  upon  tlie  South  Korean 
authorities  and  iipon  those  who  stand  behind  their  back. 

2.  As  is  known,  tlie  Soviet  Government  withdrew  its 
troops  from  Korea  earlier  than  the  Government  of  the 
United  States  and  thereby  confirmed  its  traditional  prin- 
ciple of  noninterference  in  the  internal  affairs  of  other 
states.  And  now  as  well  the  Soviet  Gdvernment  adheres 
to  the  principle  of  the  impermissibility  of  interference  by 
foreign  powers  in  the  internal  affairs  of  Korea. 

3.  It  is  not  true  that  the  Soviet  Government  refused  to 
participate  in  meetinss  of  the  Security  Council.  In  spite 
of  its  full  willingness,  the  Soviet  Government  has  not  been 
able  to  take  part  in  the  meetings  of  the  Security  Council 
in  as  much  as,  because  of  the  position  of  the  Government 
of  the  United  States,  China,  a  permanent  member  of  the 
Security  Council,  has  not  been  admitted  to  the  Council 
which  has  made  it  impossible  for  the  Security  Council  to 
take  decisions  having  legal  force. 


[Released  to  the  prcus  June  SO] 

In  its  reply  to  the  United  Nations  and  to  the 
United  States,  the  U.S.S.K.  alleges  that  the  ac- 
tion of  the  Security  Council  with  respect  to  Korea 
was  illegal,  since,  the  action  taken  did  not  have 
the  concurring  votes  of  all  the  permanent  mem- 
bers. In  its  reply  of  June  29,  to  the  United  States 
communication  of  June  27,  asking  the  U.S.S.R.  to 
use  its  influence  with  the  North  Korean  authori- 
ties to  cease  hostilities,  the  U.S.S.R.  made  the  same 
point  and  contended,  further,  that  the  action  of 
the  Council  was  illegal  because  the  representative 
of  China  participating  in  this  action  was  not  the 
representative  of  the  Feiping  regime. 

With  respect  to  article  27  of  the  Charter  dealing 
with  Security  Council  voting,  it  is  provided  that 
substantive  questions  be  decided  by  an  affirmative 
vote  of  seven  members  including  the  concurring 
votes  of  the  permanent  members. 

By  a  long  series  of  precedents,  however,  dating 
back  to  1946,  the  practice  has  been  established 
whereby  abstention  by  permanent  members  of  the 
Council  does  not  constitute  a  veto.^ 

In  short,  prior  to  the  Soviet  allegations,  every 
member  of  the  TTnited  Nations,  including  the 
U.S.S.R.  accejjted  as  legal  and  binding  decisions  of 
the  Security  Council  made  without  the  concur- 
rence, as  expressed  tlirough  an  affirmative  vote, 
of  all  permanent  members  of  the  Council. 

As  to  the  Soviet  claim  concerning  the  Chinese 
vote,  the  rules  of  procedure  of  the  Security  Coun- 

'  See  Bulletin  of  July  4,  1948,  p.  3. 

cil  provide  the  machinery  for  the  seating  of  an 
accredited  representative  of  the  Security  Council. 
No  affirmative  action  has  been  taken  which,  by 
any  stretch  of  the  imagination,  could  give  force 
to  the  contention  of  the  U.S.S.R.  that  a  representa- 
tive of  the  Peiping  regime  should  be  regarded  as 
the  representative  of  China  on  the  Security  Coun- 
cil. The  credentials  of  the  representative  of  the 
National  Government  of  China  were  approved  by 
the  Council,  and  the  Soviet  attempt,  at  a  later 
date,  to  withdraw  this  approval  was  defeated. 
Therefore,  the  vote  of  the  Nationalist  representa- 
tive on  June  25  and  27  was  the  official  vote  of 

A  list  of  some  of  the  more  important  prece- 
dents involving  action  by  the  Security  Council  on 
substantive  matters  taken  without  the  concurrence 
of  an  affirmative  vote  by  the  Soviet  Union  follow : 

Palestine  Case 

On  April  16,  1948,  the  Soviet  Union  abstained 
on  a  resolution  which  called  for  a  truce  in 

On  IMay  22, 1948,  the  Soviet  Union  abstained  on 
a  resolution  for  a  "cease-fire"'  in  Palestine. 

On  July  15,  1948,  the  Soviet  Union  abstained 
on  a  resolution  ordering  a  "cease-fire"  in  Palestine 
and  giving  instructions  to  the  Mediator  there. 

On  November  4,  1948,  the  Soviet  Union  ab- 
stained on  a  resolution  calling  upon  all  govern- 
ments concerned  to  withdraw  beyond  positions 
they  held  in  Palestine  on  October  14.  1948. 

In  none  of  these  instances  has  the  Soviet  Union 
challenged  the  legality  of  the  action  taken  by  the 
Security  Council. 

Kashmir  Case 

On  January  17, 1948,  the  Soviet  Union  abstained 
on  a  resolution  calling  upon  the  parties  concerned 
to  avoid  actions  aggravating  the  situation. 

On  January  20,  1948,  the  Soviet  Union  ab- 
stained on  a  resolution  for  setting  up  a  United 
Nations  Commission  for  India  and  Pakistan  and 
which  gave  that  Commission  broad  terms  of  ref- 

On  April  21,  1948,  the  Soviet  Union  ab- 
stained on  a  resolution  expanding  the  terms  of 
reference  of  the  United  Nations  Commission  for 
India  and  Pakistan  and  which  set  the  terms  for 
bringing  about  a  "cease-fire"  and  the  conditions 
for  the  holding  of  a  plebiscite. 

On  June  3,  1948,  the  Soviet  Union  abstained 
on  a  resolution  which  affirmed  previous  resolution 
and  ordered  the  United  Nations  Commission  to 
proceed  to  the  area. 

In  none  of  tiiese  instances  has  the  Soviet  Union 
challenged  the  legality  of  the  action  taken  by  the 
Security  Council. 

Indonesian  Case 

On  December  24,  1948,  the  Soviet  Union  ab- 
stained on  a  resolution  calling  upon  the  parties 


Deparfmenf  of  Sfafe  Bulhfin 

to  cease  hostilities  and  ordering  the  release  of 
Indonesian  officials.  In  that  ease,  the  French  also 

On  January  i2S.  1949,  the  Soviet  Union  abstained 
on  a  nnmber  of  paragraphs  of  a  resolution  setting 
up  tlie  United  Nations  Commission  for  Indonesia 
with  wide  powers. 

In  none  of  these  instances  has  the  Soviet  Union 
challenged  the  legality  of  the  action  taken  by  the 
Secnritj'  Council. 

Furthermore,  the  Soviet  Union  has  never  ques- 
tioned the  legality  of  action  taken  by  the  Security 
Council  in  which  it  voted  with  tlie  majority  but 
on  which  other  permanent  members  of  the  Council 

This  action  has  occurred  in  at  least  thi'ee  sub- 
stantive decisions : 

1.  In  the  action  of  the  Council  on  December  28, 

1948,  in  which  a  resolution  was  passed  calling  on 
the  Netherlands  to  set  free  political  prisoners  in 
Indonesia  (a  resolution  introduced  by  the  repre- 
sentative of  China).  France  and  the  United 
Kingdom  abstained  on  this  resolution. 

2.  In  the  action  of  the  Council  on  March  4, 

1949,  recommending  to  the  General  Assembly  that 
Israel  be  admitted  to  United  Nations  membership. 
The  United  Kingdom  abstained  on  this  resolution. 

3.  In  the  action  of  the  Council  on  March  5, 
1948,  i-ecommending  consultation  of  the  perma- 
nent members  of  the  Council  in  connection  with 
the  Palestine  situation.  The  United  Kingdom 
abstained  on  this  resolution. 

Tlie  voluntary  absence  of  a  permanent  member 
from  the  Security  Council  is  clearly  analogous  to 

Furthermore,  article  28  of  the  Charter  provides 
that  the  Security  Council  shall  be  so  organized 
as  to  be  able  to  function  continuously.  This  in- 
junction is  defeated  if  the  absence  of  a  repre- 
sentative of  a  permanent  member  is  construed  to 
have  the  effect  of  preventing  all  substantive  action 
by  the  Council. 

No  one  of  the  10  members  of  the  Council  par- 
ticipating in  the  meetings  of  June  2.5  and  June 
27  raised  any  question  regarding  the  legality  of 
the  action — not  even  the  member  who  dissented 
on  June  27. 


The  Economic  Cooperation  Administration  an- 
nounced on  June  26  that  it  took  immediate  action 
to  back  up  the  resistance  of  the  South  Korean 
people  in  their  heroic  struggle  to  maintain  their 

Dr.  Edgar  A.  J.  Johnson,  Director  of  ECA's 
Korean  pi-ogi-am,  stated  that  "primary  emphasis  is 
being  placed  upon  the  setting  up  of  machinery  for 
the  jH'ompt  procurement  of  supplies  and  equip- 
ment that  can  be  shipped  to  Korea  from  Japan  or 
the  United  States."     Dr.  Johnson  said  that  'Sve 

July   10,    1950 

will  bend  every  effort  to  meet  the  ci'isis  that  immi- 
nently threatens  a  free  nation." 

ECA"s  immediate-action  program  consisted  of: 

1.  Diverting  all  vessels  carrying  war  nonessen- 
tials to  ports  where  they  would  not  fall  into  Com- 
munist hands. 

2.  Rearranging  shipping  schedules  so  that  all 
available  supply  vessels  could  be  used  to  rush  mili- 
tary supplies  to  the  besieged  peninsula. 

;3.  Insuring  that  nonmilitary  supplies,  such  as 
fertilizer,  are  diverted  to  other  ports  to  keep  dock 
workers  free  for  unloading  of  guns  and  ammuni- 

4.  Switching  its  procurement  progi-am  to  an 
emergency  basis.  (Essential  commodities  like 
petroleum  and  foodstuffs  would  be  given  priority 
over  such  normal  peacetime  exports  as  fertilizer 
and  raw  cotton.) 

5.  Coordinating  its  activities  with  the  United 
States  Army  Forces  in  Japan. 


Statement  by  John  Foster  Dulles  ^ 

I  have  just  returned  from  2  weeks  in  Korea  and 
Japan.  Last  week  I  was  in  Seoul,  the  capital  of 
Korea,  on  the  invitation  of  President  Ehee.  Now 
he  is  a  fugitive,  and  the  Embassy  residence  where 
Mrs.  Dulles  and  I  were  staying  is  being  looted  by 
the  Reds. 

Earlier  this  week,  Mrs.  Dulles  and  I  were  quietly 
dining  at  our  Embassy  in  Tokyo  with  General 
and  Mrs.  MacArthur.  Now  the  General  is  lead- 
ing the  American  and  Allied  air,  sea,  and  land 
forces,  fighting  the  Red  aggressors  in  Korea. 

Events  have  happened  fast.  The  Communists 
of  North  Korea  struck  hard  and  suddenly  with 
strong  forces  well-equipped  with  Russian  tanks, 
Russian  planes,  and  Russian  heavy  artillery. 
They  have  made  big  initial  gains,  and  it  will  not 
be  easy  to  stop  them  and  throw  them  back. 

Why  did  the  North  Korean  Reds  make  this 
armed  attack  on  the  peaceful  Republic  of  South 
Korea  ?  One  thing  is  certain,  they  did  not  do  this 
purely  on  their  own  but  as  part  of  the  world 
strategy  of  international  communism. 

It  is  possible  to  make  a  good  guess  as  to  why 
Communist  strategy  directed  this  present  attack 
against  the  Republic  of  Korea. 

Reason  for  Attack 

In  the  first  place,  the  Republic  of  Korea  was 
growing  in  such  a  healthy  way  that  its  presence 
on  the  continent  of  Asia  was  an  embarrassment  to 
the  Communist  areas.     In  South  Korea,  I  talked 

'  Prepared  portion  of  a  radio  interview  over  CBS  at 
Wasliinfiton,  D.C.,  on  July  1  which  was  released  to  the 
press  on  the  same  date. 


with  all  sorts  of  people,  and  everywhere  I  got  the 
impression  of  a  happy,  wholesome  society.  There 
had  just  been  the  second  general  election,  which 
was  watched  by  representatives  of  the  United  Na- 
tions. It  was  a  free  and  fair  election ;  80  percent 
of  the  eligible  voters  had  gone  to  the  polls,  and 
the  representatives  elected  were  men  and  women 
of  fine  character.  I  attended  the  opening  of  the 
Assembly,  and  it  was  an  inspiring  event. 

The  economy  of  the  country  was  picking  up 
with  some  American  economic  help.  All  in  all, 
the  prospects  were  good. 

This  Republic  of  Korea  was  attracting  a  con- 
stant stream  of  refugees  from  the  north  who 
wanted  to  escape  from  Communist  despotism. 
Just  2  weeks  ago  tonight,  at  this  very  hour,  I  was 
meeting  at  Seoul  with  a  group  of  3,000  Christian 
refugees  from  the  north.  We  were  in  a  great  new 
church  which  was  in  process  of  construction.  I 
talked  to  the  refugees  through  an  interpreter,  and 
I  have  never  seen  men  and  women  more  clearly 
dedicated  to  Christian  principles. 

The  Communists  seem  to  have  felt  that  they 
could  not  tolerate  this  hopeful,  attractive  Asiatic 
experiment  in  democracy.  They  had  found  that 
they  could  not  destroy  it  by  indirect  aggression, 
because  the  political,  economic,  and  social  life  of 
the  Republic  was  so  sound  that  subversive  efforts, 
which  had  been  tried,  had  failed.  The  people 
were  loyal  to  their  Republic.  Therefore,  if  this 
experiment  in  human  liberty  was  to  be  crushed, 
this  crushing  could  only  be  done  by  armed  attack. 
That  is  what  is  being  attempted. 

A  second  reason  which  doubtless  influenced  them 
was  the  desii-e  to  embarrass  our  plans  for  putting 
Japan  more  and  more  onto  a  peace  basis,  with  in- 
creasing self-government  in  the  Japanese  people 
themselves.  I  went  to  Japan  so  as  to  be  able  to 
advise  the  President  and  the  Secretary  of  State 
as  to  what  our  next  moves  should  be  in  carrying 
forward  the  program  of  making  Japan  a  full  mem- 
ber of  the  free  world.  Secretary  of  Defense  John- 
son and  General  Bradley,  the  Chief  of  Staff,  were 
in  Japan  at  the  same  time  looking  into  the  situa- 
tion from  the  standpoint  of  its  security  aspects. 

The  Communists  must  have  feared  the  positive 
and  constructive  steps  which  we  were  considering 
in  regard  to  Japan.  They  probably  felt  that  if 
they  could  capture  all  of  Korea  this  would  throw 
a  roadblock  in  the  path  of  Japan's  future  develop- 
ment. The  Russians  already  hold  the  island  of 
Sakhalin,  just  to  the  north  of  Japan,  and  Korea  is 
close  to  the  south  of  Japan.  Thus,  if  the  Com- 
munists have  not  only  Sakhalin  to  the  north  but 
also  Korea  to  the  south,  Japan  would  be  between 
the  upi^er  and  lower  jaws  of  the  Russian  Bear. 
That,  obviously,  would  make  it  more  difficult  to 
provide  the  Japanese  people  with  security  as  self- 
governing,  unarmed  members  of  the  free  world. 

Broadly  speaking,  the  United  States  was  de- 
veloping positive  and  constructive  policies  to  check 

the  rising  tide  of  communism  in  Asia  and  the 
Pacific.  The  Communist  leaders  doubtless  expect 
their  action  in  Korea  to  dislocate  our  plans. 

Attack  Strengthens  Free  World 

They  will,  I  think,  be  disappointed.  The  result 
of  their  armed  attack  on  the  Republic  of  Korea 
will  be  to  strengthen  both  the  resolution  and  the 
capabilities  of  the  free  world.  We  now  know  we 
have  to  meet  a  new  danger  to  world  peace  and 
security.  We  have  always  known  that  Commu- 
nists believed  in  advancing  their  cause  by  methods 
of  violence.  We  have,  however,  hoped,  up  to  now, 
that  they  would  limit  themselves  to  violence  of  an 
internal  character  such  as  strikes,  sabotage,  and 
possibly  guerrilla  and  civil  warfare.  We  hoped 
that  they  would  not  use  military  might  to  attack 
and  conquer  peaceful  countries  in  open  violation 
of  the  principles  established  by  the  United  Na- 
tions to  insure  international  peace  and  security. 

The  Korean  attack  marks  a  new  phase  in  Com- 
munist recklessness.  If  the  members  of  the  United 
Nations  sat  idly  by  and  did  nothing  to  repel  the 
present  armed  attack,  then  almost  certainly  that 
method  would  be  used  elsewhere.  One  country 
after  another  would  be  conquered  by  Red  armies, 
and  the  result  would  be  to  make  a  third  world  war 
almost  certain.  Also,  by  that  time,  the  Russian 
position  would  be  so  strong  that  the  United  States 
and  other  remnants  of  the  free  world  would  be  in 
great  peril. 

Fortunately,  the  world  is  organized  for  peace 
better  than  in  1939.  The  United  Nations  Security 
Council  acted  almost  instantly  to  condemn  the  ag- 
gression on  Korea  and  called  on  the  member  states 
to  help  repel  the  attack.  The  j^rompt  response  of 
the  United  States  and  other  members  shows  that 
aggressors  cannot  now  act  with  impunity. 

The  President  of  the  United  States,  with  bi- 
partisan backing,  has  given  our  nation,  and  indeed 
the  entire  free  world,  fine  leadership.  Tlie  Ameri- 
can people  are  united  for  action,  not  only  in  Korea 
but  also,  as  the  President  has  pointed  out,  to  pre- 
vent Formosa,  Indochina,  and  the  Philippines 
falling  into  Communist  aggression. 

In  my  recent  book.  War  or  Peace,  I  said  that 
men  would  never  see  lasting  jjeace  unless  they 
were  willing  to  mobilize  for  peace  the  moral  and 
material  resources  that  they  would  mobilize  for 

We  are  now  waging  peace.  I  think  we  shall 
win  it.  It  will  not  be  won  easily.  It  will  require 
sacrifices  and  will  involve  risks.  It  seems  that 
the  immediate  risk  is  not  general  war  but  rather 
that  of  an  experimental  probing  effort  to  find  out 
whether,  under  present  world  conditions,  armed 
aggression  pays.  That  militaristic  experiment 
nuist  fail.  If  we,  with  other  free  nations,  make 
it  fail,  then  we  will  have  made  an  epochal  step 
toward  lasting  peace. 


Department  of  State  Bulletin 

Support  of  Mutual  Defense  Assistance  Program  for  1951 

Statement  by  Secretary  Acheson  ^ 

I  appear  before  you  today  to  support  an  ap- 
propriation for  the  continuance  of  the  Mutual  De- 
fense Assistance  Program  during  fiscal  year  1951. 
This  appropriation  is  required  for  three  purposes : 
First,  to  provide  new  obligational  authority  for 
the  program  which  is  proposed  for  the  forthcom- 
ing 12  months ;  second,  to  provide  cash  to  liquidate 
this  year's  contract  authority ;  and  third,  to  make 
available,  for  use  in  fiscal  year  1951,  that  small 
portion  of  cash  and  contract  authority  which  is 
required  to  complete  the  current  program  and 
which  may  still  remain  unobligated  on  June  30. 

On  October  28,  1949,  Congress  appropriated 
$814,010,000  in  cash  and  $500,000,000  in  contract 
authority  for  the  purposes  of  carrying  out  the 
Mutual  Defense  Assistance  Act  of  1949.  This 
represented  a  total  of  $1,314,010,000  in  new  obli- 
gational authority. 

The  appropriation  of  these  funds  did  not  occur 
until  late  last  year.  Their  expenditure,  in  large 
part,  was  made  contingent  upon  certain  condi- 
tions precedent  which  were  not  fulfilled  until  late 
in  January.  Nevertheless,  as  was  estimated  in 
hearings  before  this  Committee  last  year,  it  has 
been  possible  to  obligate  these  funds  almost  com- 
pletely. Thus,  we  have  been  able  to  inaugurate 
the  planned  programs  of  aid  which  are  so  essen- 
tial to  our  security  and  to  proceed  with  further 
plans  and  programs  which  are  solidly  based  on 
the  foundations  thus  constructed.  The  legisla- 
tion before  this  Committee  includes  a  request  that 
that  the  small  proportion  of  authorized  funds  not 
yet  obligated  be  made  available  for  future  obli- 
gation. This  is  necessary  in  order  to  complete  the 
1950  progi-ams  already  begun.  Also  in  the  legis- 
lation before  you  is  a  request  for  appropriations 
to  liquidate  $455,523,729  worth  of  contract  obli- 
gations which  have  been  entered  into  pursuant  to 
the  authority  granted  last  year. 

The  most  important  aspect  of  the  proposed 

"  Made  before  the  Senate  Appropriations  Committee  on 
June  26  and  released  to  the  press  on  the  same  date. 

legislation,  is,  of  course,  the  provision  of  funds 
for  the  continuation  of  the  Mutual  Defense  As- 
sistance Program  in  1951.  For  this  purpose, 
$1,222,500,000  is  requested.  The  total  is  proposed 
to  be  allocated  as  follows : 

Allocation  of  1951  MDAP  Funds 

A  total  of  1  billion  dollars  for  provision  of 
military  assistance  to  our  partners  in  the  North 
Atlantic  area;  $131,500,000  for  provision  of  mili- 
tary assistance  to  Greece,  Turkey,  and  Iran; 
$16,000,000  for  provision  of  military  assistance  to 
the  Republics  of  the  Philippines  and  Korea,  and 
$75,000,000  for  provision  of  assistance  in  the  gen- 
eral area  of  China. 

I  want  to  assure  this  Committee  that  I  fully 
appreciate  that  these  are  not  small  sums.  It  is 
equally  true  that  the  problems  we  face  are  neither 
small  nor  susceptible  of  cheap  and  easy  solution. 
The  most  careful  and  extensive  consideration  of 
the  need  for  these  appropriations  has  been  given 
by  the  three  agencies  of  the  executive  branch  pri- 
marily concerned — the  Department  of  Defense, 
the  Economic  Cooperation  Administration,  and 
the  Department  of  State.  We  have  sought  care- 
fully to  determine  what  is  necessai-y  in  the  present 
world  situation  to  maintain  and  enhance  our  se- 
curity, what  are  the  most  effective  and  best  means 
for  achieving  that  result,  and  what  is  required  to 
assure  that  we  will  obtain  the  maximum  return. 

When  this  Committee  and  the  Congress  last 
year  considered  and  approved  an  appropriation 
for  military  assistance  for  nations  in  the  North 
Atlantic  area,  there  had  been  a  similar  careful  ex- 
amination of  requirements  and  methods,  but  there 
was  absent  then  an  element  of  great  importance 
which  is  present  now.  That  element  is  experience. 
This  year,  we  have  the  benefit  of  actual  operation 
of  the  North  Atlantic  Treaty  Organization 
(Nato)  .  The  results  to  date  are  highly  encourag- 
ing ;  they  are  real ;  they  are  substantial ;  they  augur 
well  for  the  future. 

The  members  of  the  North  Atlantic  Treaty  have 

July  10,   1950 


achieved  an  amazing  record,  a  record  of  peace- 
time cooperation  for  peace  unprecedented  in  his- 
tory. Let  us  quickly  review  these  remarkable 
accomplishments  from  the  point  of  view  of  what 
they  signify  with  respect  to  the  next  year. 

Achievement  of  NAP  Countries 

The  quick  agreement  of  the  North  Atlantic 
Treaty  countries  upon  a  strategic  concept  for  the 
integrated  defense  of  the  North  Atlantic  area  as- 
sured us  that  all  the  member  nations  are  agreed 
that  tlie  defense  of  the  North  Atlantic  area  can 
not  and  will  not  be  based  on  12  individual  and 
separate  nationalistic  defense  schemes  but,  rather, 
on  a  coordinated  and  integrated  defense  plan  for 
the  entire  area,  under  which  each  nation  would 
play  the  role  for  which  its  location  and  resources 
best  fit  it.  We  knew  last  year  that  such  an  agree- 
ment must  be  reached  if  the  task  of  defending  the 
area  was  to  be  met  efficiently  and  effectively.  The 
fact  that  it  was  reached,  and  that  it  was  reached 
quickly,  is  significant  of  the  mutual  realization 
and  acceptance  of  the  need  for  it  by  all  the  Treaty 

The  progress  made  under  the  North  Atlantic 
Treaty  is  not  confined  to  the  acceptance  of  the 
basic  principles  contained  in  the  mutually  agreed 
and  approved  strategic  concept.  This  was  but 
the  fii-st  step  in  a  long  series  required  to  give  life 
and  strength  to  the  compact. 

An  effective  organization,  designed  to  meet  and 
solve  the  problems  involved,  has  been  established 
by  the  North  Atlantic  Treaty  countries.  That  or- 
ganization, on  its  military  side,  provides  the 
means  to  reach  sound  collective  military  judg- 
ments, with  respect  to  the  defensive  requirements 
for  the  North  Atlantic  Treaty  area.  On  its  fi- 
nancial and  economic  side,  it  provides  a  means  for 
tackling  the  difficult  problems  involved  in  finding 
ways  and  means  to  meet  the  common  need  for  in- 
creased strength.  Illustrative  of  common  prob- 
lems are  those  involved  in  agreeing  upon 
production  location  and  procedures,  financing  of 
production,  and  transfers,  standardization,  and 
the  like.  The  agreement  reached  at  the  recent 
North  Atlantic  Treaty  Council  meeting  to  estab- 
lish a  permanent  Council  of  Deputies  will  provide 
a  mechanism  in  continuous  operation  to  guide, 
coordinate,  and  integrate  the  work  of  the  various 
subordinate  bodies  of  the  organization. 

Outstanding  in  the  progress  of  the  Nato  to  date 
is  the  resolution  of  the  North  Atlantic  Treaty 
Council  urging  governments  in  developing  forces 
for  the  defense  of  the  North  Atlantic  area  to  con- 
centrate on  the  creation  of  balanced  collective 
forces  rather  than  balanced  national  forces.  This 
resolution,  which,  significantly,  also  urged  the 
progressive  build-up  of  defense  forces,  exemplifies 
the  realistic  and  forthright  determination  of  all 
members  to  proceed  vigorously  and  to  base  their 
efforts  on  a  principle  of  fundamental  importance. 

The  bilateral  agreements  between  the   North 

Atlantic  Treaty  countries  and  the  United  States, 
under  which  our  aid  is  provided,  are  solemn  under- 
takings wliich  assure  that  our  assistance  is  but  a 
part  of,  and  is  matched  by,  a  cooperative  self-help 
program  designed  to  increase  the  defensive 
strength  of  the  area.  That  these  undertakings 
were  sincere  and  earnestly  supported  by  all  par- 
ticipants has  been  borne  out  by  the  implementing 
deeds  thereunder.  Thus,  in  spite  of  the  continued 
necessity  of  attaining  economic  recovery  and  sta- 
bility, wliich  is  essential  to  the  success  of  any 
defense  effort  in  Western  Europe,  oiu-  European 
partners  are  progressively  devoting  greater  effort 
and  more  funds  to  meeting  defense  needs.  In  spite 
of  the  violent  and  full-scale  Soviet  propaganda  at- 
tacks against  the  program  of  defense,  and  despite 
Soviet  efforts  to  promote  strikes  and  violence  to 
prevent  the  unloading  of  material  being  shipped 
under  this  program,  these  nations  have  proceeded 
courageously,  steadily,  and  effectively  to  increase 
the  defensive  strength  of  the  area,  through  their 
own  efforts  and  with  our  help.  The  fact  that  they 
have  and  are  so  acting  is  significant  of  a  new  spirit 
which  is  being  developed  in  Eui'ope,  a  spirit  which 
is  based  upon  the  conviction  that  the  job  can  and 
will  be  done. 

The  proposals  recommended  by  the  Administra- 
tion for  fiscal  year  1951  are  specifically  related  to 
these  accomplishments.  The  manner  in  which 
next  year's  program  has  been  developed  demon- 
strates this  fact.  "Wliile  based  on  a  variety  of 
factors,  those  fundamental  to  our  consideration 
here  are:  First,  the  program  consists  of  those 
items  most  urgently  needed  at  this  time,  based 
on  the  i-equirements  for  the  defense  of  the  area  as 
they  have  been  developed  by  the  planning  of  the 
Treaty  Organization;  second,  it  takes  account  of 
the  ability  of  the  European  nations,  actively  co- 
operating together  on  the  basis  of  self-help  and 
mutual  aid,  tlirough  their  own  increased  military 
production,  to  fill  these  requirements  without 
destroying  their  economic  stability;  third,  it  is 
limited  by  the  capability  of  the  European  nations 
to  support  forces  and  the  capacity  of  those  forces 
to  assimilate  the  aid  which  can  be  furnished;  and 
fourth,  it  is  governed  by  our  own  military  supply 
position  and  capacity  to  furnish  aid. 

Assistance  Promotes  Security  of  U.S. 

What  has  been  agreed  to,  accomplished,  and 
undertaken  to  date  offers  us  full  assurance  that 
our  aid  will  contribute  to  the  integrated  defense  of 
the  area;  that  it  will  be  utilized  solely  for  the 
build-up  of  balanced  collective  defense  forces,  and 
that  we  will,  thereby,  promote  the  security  of  the 
United  States. 

This  program  for  next  year  will  certainly  not 
complete  the  task  of  building  adequate  defensive 
strength  in  the  North  Atlantic  area.  Much  re- 
mains to  be  done;  Soviet  Russia  still  pursues  the 
course  of  arming  for  aggression,  threatening  the 
weaker  nations,  jn-obing  for  their  weakest  spots, 


Department  of  State   Bulletin 

refusinp;  to  work  through  the  United  Nations  for 
peace.  We  have  not  yet  been  able  fully  to  deter- 
mine the  exact  size  and  nature  of  the  defensive 
strength  required  to  insure  us  against  future  ag- 
gression against  the  North  Atlantic  area.  We  do 
know  that  our  defenses  are  far  too  weak;  we  do 
know  that  we  must  aid  our  partners  to  build  up 
their  forces  swiftly. 

We  also  know  that  the  spirit  of  the  peoples  of 
the  North  Atlantic  area  is  progressively  more 
hopeful,  reflecting  an  increasing  conviction  that 
free  peoples,  working  freely  together  on  terms  of 
equality  and  mutual  understanding,  can  make 
their  own  defense  a  real  and  attainable  objective. 
We  and  our  partners  must  continue  to  work  hard; 
we  must  work  effectively.  Each  must  do  what  he 
best  can  to  achieve  the  goal.  By  working  together, 
our  cherished  freedoms  can  be  maintained. 

Turning  to  the  recommendation  of  continued 
militaiy  assistance  for  Greece  and  Turkey,  we  find 
ourselves  with  a  more  extensive  and  equally  en- 
couraging record.  The  success  which  has  been 
achieved  by  the  peoples  of  Greece  is  clear  proof 
that  the  forces  of  aggression  can  be  halted  by  in- 
voking the  pi'oper  measures  at  the  proper  time. 
The  Greek  Government  now  has  full  control  of 
all  its  territories  for  the  first  time  since  1940. 
These  hard-won  gains  must  not  be  lost.  Greece 
must  continue  to  build  up  its  defensive  strength  in 
order  to  maintain  its  internal  security  which  is 
so  essential  to  the  attainment  of  economic  and  po- 
litical stability.  The  people  of  Greece  must  be  aole 
to  subdue,  quickly,  any  possible  recrudescence  of 
Communist  guerrilla  activities.  The  successes  so 
far,  which  United  States  aid  enabled  the  Greeks 
to  attain,  do  make  it  possible  for  military  assist- 
ance from  the  United  States  to  be  reduced  sub- 
stantially below  that  provided  last  year.  The 
Greek  program  is  a  concrete  illustration  of  the 
practical  values  of  providing  military  assistance 
to  peoples  determined  to  defend  themselves  and 
their  liberties. 

The  record  of  our  program  of  military  assistance 
to  Turkey  is  another  one  of  which  we  can  be  proud. 
The  Turkish  people,  even  before  any  provision  of 
assistance  by  us,  and  unprepared  for  modern  war- 
fare though  they  were,  withstood  Soviet  pressures. 
With  our  assistance,  supplementing  their  own  de- 
termination, this  strong  resistance  against  con- 
tinued Soviet  pressures  has  been  based  on  an  in- 
creasing ability  to  meet  force  with  force.  The 
Turkish  will  to  resist  is  characterized  by  its  ex- 
penditure of  35^0  percent  of  its  revenues  for 

military  purposes.  These  heavy  expenditures, 
which  cannot  be  increased  without  serious  en- 
dangering of  the  Turkish  economy,  cannot  provide 
the  equipment  which  is  required  to  complete  the 
modernization  of  the  Turkish  armed  forces  and 
to  provide  the  further  training  in  modern  warfare 
which  is  needed.  Our  continued  assistance  will 
enable  Turkey  to  meet  the  requirements  imposed 
by  a  ruthless  potential  aggressor. 

I  need  not,  in  discussing  the  request  for  the  con- 
tinuation of  military  assistance  to  Iran,  elaborate 
on  its  strategic  position  and  the  importance  to  the 
free  world  of  maintaining  its  security.  To  main- 
tain its  security,  Iran  needs  modern  well-equipped 
forces.  Iran  cannot,  in  its  present  economic  con- 
dition, meet  its  needs  without  help.  It  requires 
assistance  to  modernize  its  forces  and  to  meet  its 
most  urgent  military  deficiencies.  We  propose  to 
aid  Iran  in  filling  some  of  its  most  urgent  needs 
in  order  that  it  may  become  capable  of  meeting 
its  security  problems. 

The  situation  in  the  Far  East  was  never  more 
than  today  a  matter  of  the  gravest  concern  to  this 
Government.  The  bill  before  the  Committee  pro- 
vides $16,000,000  in  additional  funds  for  aid  to 
Korea  and  the  Philippines  and  $75,000,000  for  aid 
in  the  general  area  of  China.  The  importance  of 
obtaining  these  funds  need  not  be  underlined. 
All  matters  relating  to  United  States  aid  in  the 
Far  East  are  now  in  the  hands  of  the  President 
for  his  decision  so  far  as  the  executive  branch  is 
concerned.  Under  these  circumstances  and  at  his 
direction,  I  shall  not  talk  today  about  possible 
courses  of  action  in  that  area.  It  must  be  obvious 
that  the  immediate  passage  of  tlris  bill,  with  the 
funds  which  it  will  provide  for  use  in  the  Far  East 
and  the  flexibility  which  it  contains,  is  of  the 
greatest  importance. 

In  summary,  I  would  like  to  repeat  what  I  said 
earlier :  It  is  our  sincere  and  honest  judgment  that 
this  program,  and  every  dollar  of  it,  is  urgently 
needed  for  the  security  of  our  friends  and  our- 
selves. Military  assistance  is  not  a  panacea  of 
all  the  ills  of  the  world,  nor  will  this  pi-ogram  solve 
all  the  problems  with  which  we  must  deal.  I  am 
convinced,  however,  that  this  aid  will  contribute, 
and  materially  contribute,  to  the  creation  of  situ- 
ations in  which  we  may  be  able  more  efl'ectively  to 
deal  with  and  to  solve  those  problems. 

Our  objective  is  peace.  If  we  are  to  have  peace, 
the  free  nations  of  the  world  must  be  strong. 
This  program  will  aid  them  in  the  achievement 
of  that  strength  which  will  discourage  aggression 
and  promote  peace. 

July   10,   1950 



hy  Bernard  Wiesman  ^ 

American  labor  is  so  important  a  segment  of  the 
American  population  and  so  dynamic  a  force  in 
American  economics  and  politics  that  it  must  play 
a  major  part  in  the  shaping  of  American  diplo- 
macy. Even  if  labor  were  to  remain  completely 
silent,  its  very  silence  would  influence  American 
policy  and  remove  one  of  the  most  potent  in- 
fluences which  now  constitute  America's  activity 
in  world  affairs. 

Labor's  role  in  world  affairs  is  obviously  that 
of  one  section  of  the  American  people  and  pre- 
supposes similar  activity  by  other  elements  of 
American  life  whether  they  be  in  industry  or 
agriculture,  in  religion  or  in  education. 

Labor  is  more  than  a  numerical  portion  of  the 
American  population  so  far  as  world  affairs  are 
concerned.  Labor  has  a  special  significance  in 
the  production  of  essentials  of  national  life  and 
of  international  trade.  In  addition,  it  has  a  par- 
ticular importance  in  people-to-people  relation- 
ships. In  the  present  phase  of  world  progress, 
working  people  are  in  the  lead  in  what  might  be 
described  as  a  revolutionary  development.  In 
some  of  the  older  industrial  countries,  labor  has 
come  of  age  and  has  begun  to  exercise  the  duties 
of  the  head  of  the  family.  In  newer  countries, 
there  is  an  almost  frantic  haste  to  bridge  within 
months  or  years  the  experience  of  many  centuries. 
In  such  areas,  working  people  are  being  invited 
to  take  on  roles  of  responsibility  in  the  political, 
social,  and  economic  life  of  their  country  for  which 
they  have  lacked  even  the  most  elementary  of  the 
three  E's.     Whether  this  situation  is  good  or  bad 

'  This  article  is  based  on  an  address  delivered  before 
the  eight  annual  conference  of  the  Labor  Education  As- 
sociation at  Swarthmore,  Pa.,  on  June  17. 

is  not  the  question.  It  is  a  fact,  and  we  must  try 
as  a  nation  to  face  facts  and  to  build  upon  them 
the  structures  which,  in  the  long  range,  will  be 
in  the  best  interests  of  all  concerned. 

Control  of  the  organized  labor  movement  of  the 
world  is  among  the  foremost  objectives  for  which 
the  Kremlin  is  now  waging  its  cold  war.  Labor's 
role  in  world  affairs,  therefore,  becomes  a  matter 
of  major  significance  to  our  country  as  a  whole. 
Leaders  in  AFL,  CIO,  and  Railway  Brotherhoods 
have  a  keen  realization  of  that  fact  and  have  taken 
effective  steps  aimed  to  checkmate  the  Comin- 
form's  program  as  exemplified  in  the  so-called 
World  Federation  of  Trade  Unions  (Wrru). 

Labor's  Role  in  Promoting  Freedom 

What  organized  labor  can  do  to  promote  the 
basic  freedoms  in  the  present  world  is  a  respon- 
sibility for  labor  to  decide.  The  Department  of 
State  has  no  desire  to  dictate  to  labor  what  it 
should  do  or  to  try  to  control  what  labor  does. 
We  know  that  we  neither  have  the  right  nor  the 
wisdom  to  manage  the  affairs  of  a  free  world  labor 
movement.  The  Department  of  State  realizes  the 
fundamental  truth  in  what  President  Truman  re- 
cently said  concerning  the  effectiveness  of  Ameri- 
can labor's  testimony  among  workers  in  other 

The  Department,  therefore,  asks  the  trade-union 
leaders  of  this  country  to  carry  America's  message 
abroad  through  all  available  channels  and  to  see 
that  workers  in  other  lands  come  to  know  what 
our  freedoms  mean  and  to  choose  those  freedoms 
as  their  way  of  life.  We  want  American  trade 
unionists  to  show  other  workers  that  the  strength 
of  our  nation  is  in  its  freedom,  its  friendliness,  its 


Department  of  State  Bulletin 

hope  of  helping  others,  its  moral  principles.  We 
want  American  trade  unionists  to  show  workers  of 
otlier  lands  that  the  American  worker  is  about  as 
close  as  anyone  can  get  to  the  average  American 
citizen,  that  he  is  a  hard-working  decent  guy  who 
aims  to  earn  his  pay  and  get  more  of  it,  using  it 
for  a  comfortable  living  for  his  family,  going  to 
church  on  Sunday,  and  sending  his  youngsters  to 
school  and  many  of  them  to  college. 

If  the  masses  of  workers  in  other  lands  could 
know  American  workers  as  they  are,  they  would 
reject  instinctively  the  deceits  of  the  Cominform, 
which  are  predicated  upon  the  thesis  that  Ameri- 
can workers  are  either  fools  or  knaves.  The  kind 
of  false  propaganda  which  they  peddle  is  based 
upon  the  fiction  that  American  labor  leaders  are 
the  tools  of  the  State  Department  and  that  the 
State  Department  is  the  tool  of  Wall  Street. 

The  propagandists  of  the  so-called  World  Fed- 
eration of  Trade  Unions  attack  the  new  Inter- 
national Confederation  of  Free  Trade  Unions  as 
a  sort  of  Titoist  deviationism  and  label  it  the 
"Yellow  Internationale."  They  use  that  label  in 
countries  outside  of  the  Orient.  In  that  area,  they 
presumably  use  a  different  adjective. 

Labor's  Contribution 

to  International  Cooperation 

The  trade-union  centers  of  this  country,  AFL, 
CIO,  and  Railway  Labor  Executives,  are  actively 
committed  to  a  program  of  international  co- 
operation to  advance  free  trade  unionism  and  to 
unmask  and  discredit  the  Wftu  as  the  satellite 
of  the  Cominform.  The  AFL,  the  CIO,  and  the 
United  Mine  Workers  all  participated  in  the 
founding,  last  December  at  London,  of  the  In- 
ternational Confederation  of  Free  Trade  Unions 
(IcFTu).  The  Railway  Labor  Executives  under- 
standably make  their  international  cooperation 
through  the  IcFTU-affiliated  International  Trans- 
portworkers' Federation  (Itf).  Credit  should  be 
acknowledged  to  the  part  played  by  two  great 
American  trade  unionists  in  bringing  about  the 
affiliation  of  the  Railway  Labor  Executives  with 
the  Itf  at  a  time  when  it  was  the  sole  rallying 
point  of  international  opposition  to  the  Wftu. 
I  refer  to  the  late  Bob  Watt,  of  the  AFL,  and  the 
late  Harry  Frazer,  of  the  Railway  Labor  Exec- 

Membership  in  these  world  organizations  is  by 
no  means  the  only  evidence  of  AFL  or  CIO  ac- 
tivity internationally.     Both  have  standing  in- 

ternational committees  composed  of  executive 
council  members  and  full-time  international 
representatives.  Both  devote  an  extensive  por- 
tion of  the  time  of  the  aimual  conventions  to  in- 
ternational affaii's  and  the  President  and  Secre- 
tary-Treasurer of  each  take  direct  personal  in- 
terest in  the  international  activity. 

The  Free  Trade  Union  Committee  of  the  AFL 
has  been  an  active  and  constructive  force  in  Europe 
and  Asia.  Tlie  Amalgamated  Clothing  Workers 
is  an  example  of  international  activity  by  one  of 
the  great  trade  unions  of  the  CIO.  The  UAW 
is  another  CIO  union  which  has  shown  initiative 
in  international  activity.  A  further  example,  per- 
haps the  most  dramatic  because  of  its  far-reaching 
influence  is  the  International  Ladies  Garment 
Workers  Union. 

The  specialized  Latin  American  activities  of  the 
AFL,  and  of  the  CIO,  should  also  be  noted  espe- 
cially in  view  of  this  country's  good-neighbor 

Traditional  ties  with  other  countries  have  also 
brought  fraternal  relations  between  the  trade- 
union  movements.  A  half-century  practice  of  ex- 
changing fraternal  delegates  has  knit  a  bond  be- 
tween the  AFL  and  the  British  Trades  Union  Con- 
gress, while  both  AFL  and  CIO  have  sent  special 
representatives  to  Italy  and  Israel  to  help  the 
trade-union  movements  there  meet  their  postwar 

Trade-union  dollars  are  backing  up  the  words 
of  convention  resolutions,  and  day-to-day  efforts 
of  trade-union  leaders  abroad  are  translating  the 
policies  of  international  committees. 

Activities  of  International  Labor  Organizations 

The  International  Confederation  of  Free  Trade 
Unions  is  the  trade-union  center  of  the  free  world 
to  which  belongs  almost  every  major  labor  organi- 
zation which  is  free  to  choose.  Those  affiliated 
with  the  International  Federation  of  Christian 
Trade  Unions  and  a  small  handful  of  others  re- 
main outside  at  present,  for  cogent  national  rea- 
sons. American  labor  leaders  have  tried  hard  to 
secure  the  affiliation  of  all  trade-union  centei-s  of 
the  free  world,  but  the  Christian  unions,  which 
are  of  great  importance  in  certain  European  coun- 
tries, have  a  long  tradition  of  international  col- 
laboration to  seek  Christian  ideals  of  employer- 
worker  relations  as  distinguished  from  the  Social- 
ist philosophy  which  permeates  the  thinking  of 
their  major  rivals.     Italy  now  has  a  unified  trade- 

July   10,   1950 


union  center  of  major  non-Communist  unions  to 
compete  with  the  Communist-controlled  Federa- 
tion headed  by  Di  Vittorio. 

The  International  Confederation  of  Free  Trade 
Unions  with  headquarters  at  Brussels  was  cre- 
ated only  in  December.  Late  in  May,  the  Icftu 
held  its  first  Council  meeting  and  gave  evidence 
that  it  has  begun  to  function.  Icftu  is  sending  a 
delegation  of  five  members,  including  two  Ameri- 
cans, to  make  a  3-month  survey  of  the  situation  in 
Asian  countries  with  a  view  to  determining  what, 
if  any,  regional  organization  should  be  established. 
Later  in  the  year,  the  possibility  of  a  Latin  Amer- 
ican regional  set-up  will  be  investigated.  A  re- 
cent meeting  at  Dusseldorf,  to  consider  the  prob- 
lems of  the  Ruhr,  indicates  the  possible  develop- 
ment of  a  European  unit.  The  Icftu  is  getting 
under  way  as  a  nongovernmental  organization  with 
category  A  consultative  status  with  the  Economic 
and  Social  Council  of  the  United  Nations,  the  In- 
ternational Labor  Organization,  etc.  The  Icftu 
intends  to  be  the  voice  of  free  world  labor,  sustain- 
ing the  cause  of  legitimate  trade  unions  as  essen- 
tial in  any  economic  democracy  and  as  bulwarks 
of  any  political  democracy.  All  major  American 
trade  unions  have  shown  their  support  for  the 
Icftu,  but  it  is  to  be  expected  that  the  unions  ex- 
pelled by  the  CIO  for  devotion  to  the  Communist 
Party  will  confirm  that  misguided  zeal  by  affiliat- 
ing with  the  Wftu. 

The  AVorld  Federation  of  Trade  Unions  wears 
a  resjiectable  label,  placed  upon  it  by  a  great 
American  labor  leader  who  had  thought  that 
active  participation  in  Wftu  would  contribute  to 
a  democratic  peace.  He  was  eager  to  emphasize 
that  it  should  be  a  bona  fide  trade-union  system, 
rather  than  a  political  mechanism  for  labor,  but 
he  has  long  since  concluded  that  the  ideals  he 
sought  could  not  be  achieved  in  a  Wftu  controlled 
by  the  Kremlin.  The  Wfitt  was  Moscow's  major 
postwar  front  organization  through  which  Mos- 
cow sought  to  manipulate  world  opinion,  to  con- 
trol the  international  policies  of  national  trade- 
union  centers,  and  to  infiltrate  national  centers. 
It  was  founded  in  1945,  and,  in  1949,  the  three 
major  free  trade-union  members  withdrew.  They 
had  decided  that  they  could  no  longer  associate 
with  a  Wftu  which  in  1945  appealed  for  all  pos- 
sible aid  for  reconstruction  of  Europe  and  which 
in  1947  refused  even  to  publicize  the  Marshall 
Plan.  The  Wftu,  free  of  the  restraining  influ- 
ence of  the  legitimate  trade  unionists  from  the 

United  States,  United  Kingdom,  and  Nether- 
lands, has  enrolled  itself  in  the  service  of  the  Com- 
inform  even  to  the  extent  of  denouncing  the 
Wftu  Executive  Council  member  from  Yugo- 
slavia severing  ties  with  him  as  a  Titoist,  and  of 
divorcing  tiie  Yugoslav  labor  oi-ganization  of 
which  he  is  Secretary  General,  from  contact  with 
other  members  of  the  Wftu.  The  color  of  the 
Wftu  was  also  shown  by  the  pronounciamentos 
at  its  Peiping  meeting  late  last  year.  In  language 
of  plainly  incendiary  character,  it  called  upon  the 
workers  of  Asia  to  follow  the  example  of  China 
and  to  overthrow  their  alleged  exploiters  in  the 
governments  of  the  new  and  old  nations  of  Asia. 
The  Wftu  delegates  at  Peiping  included  a  choice 
collection  of  Asian  representatives  who  have  been 
in  process  of  education  at  Moscow  for  many  years 
and  who  are  evidently  being  returned  to  their 
native  lands  for  subversive  activities  among  the 
workere  in  such  countries  as  India,  Indonesia,  and 

Perhaps,  the  best  description  of  the  Wrru  of 
today  is  that  it  is  the  company  union  for  the  Com- 
inform  in  which  membership  ordinarily  is  com- 
pulsory for  Communist-dominated  unions  and 
through  which  the  Wftu  management  hopes  to 
sabotage  and  destroy  legitimate,  and  hence  free, 
trade  unionism. 

In  this  hemisphere,  the  Confederation  of  Latin 
American  Workers  predated  the  Wftu  but  rarely 
has  deviated  from  the  master  pattern. 

AFL  and  CIO  leaders  are  now  working  with 
the  Icftu  leadership  toward  a  legitimate  demo- 
cratic regional  organization.  The  sponsors  of  the 
Inter-American  Confederation  of  Labor,  estab- 
lislied  only  2  or  3  years  ago  as  a  rallying  point  for 
iniions  free  of  Communist  control,  are  eager  to 
take  such  steps  as  will  effectuate  their  original 
intent  in  union  with  the  Icftu.  Similiar 
strengthening  of  two  other  regional  organizations 
is  expected  through  the  Icftu.  I  refer  to  the 
Asian  Federation  of  Labor  which  held  its  first 
regional  meeting  in  Ceylon  last  January  and  to 
the  ERP-Trade  Union  Advisory  Committee  in 

Mention  must  be  made  of  another  form  of  inter- 
national cooperation  among  workers.  I  refer  to 
the  international  trade  secretariats  or,  as  they 
might  be  called,  the  international  industrial  or 
craft  federations.  There  are  more  than  a  dozen 
of  these  affiliated  with  the  Icftu  in  a  cooperating 
arrangement  which  preserves  the  essential  auton- 


Department  of  State  Bulletin 

omy  of  these  federations.  This  group  includes 
the  International  Federation  of  Transport  work- 
ers wliich  combines  national  organizations  repre- 
senting between  4  and  5  million  workers  in  marine, 
rail,  highway,  and  air  transport  in  countries  all 
over  the  world.  The  International  Metal  Work- 
ers, the  Miners'  Federation,  the  Textile  "Workers 
are  among  the  next  largest.  Only  one  of  these 
groups  has  chosen  to  desert  freedom  and  that  one 
is  the  journalists'  union  where  leadei-ship  was 
secured  on  a  narrow  margin  and  the  organization 
perverted  to  Communist  aims.  Organizations 
such  as  the  Newspaper  Guild  have  accordingly 
left  the  group. 

In  Europe,  most  of  these  international  trade 
secretariats  have  functioned  since  early  in  this 
century.  They  have  supplied  fraternal  ties  among 
workers  in  the  great  industries,  and  those  which 
have  enjoyed  any  substantial  income  have  been  im- 
portant factors  in  the  economic  life  of  the  Conti- 
nent. They  are  not  competitors  of  the  Icftu. 
They  have  their  own  financing  through  dues  col- 
lected from  national  affiliates  such  as  the  Kailway 
Labor  Executives,  the  Machinists,  the  UAW-CIO, 
the  Mine  Workers,  etc. 

The  importance  of  their  work  is  emphasized  by 
the  energy  with  which  the  World  Federation  of 
Trade  Unions,  having  failed  to  capture  the  secre- 
tariats, has  undertaken  to  set  up  rival  organiza- 
tions. The  Wrru  program,  originally,  was  to 
transform  the  autonomous  secretariats  into  indus- 
trial departments  of  the  Wrru.  Wlien  the  major 
free  unions  left  the  Wrxu,  it  undertook  to  estab- 
lish international  unions  with  the  appearance  of 
autonomy  which  could  invite  the  affiliation  of  out- 
fits such  as  the  International  Longshoremen's  and 
Warehousemen's  Union.  There  Wrru  agencies 
have  sought  to  get  the  affiliation  of  any  national 
unions  of  like-minded  leadei'ship  even  when  the 
national  trade-union  center  has  repudiated  the 
Wftu  itself  and  denounced  all  of  its  arms  and 

Labor's  role  in  world  affairs  is  recognized  in 
the  operations  of  the  United  Nations  and  its  organs 
and  specialized  agencies.  On  the  one  hand,  many 
national  delegations  include  among  their  dele- 
gates or  advisers  men  and  women  from  labor- 
union  leadership.  On  the  other  hand,  as  author- 
ized in  the  Charter  of  the  United  Nations, 
international  nongovernmental  organizations  have 
been  accorded  consultative  status  with  the  Eco- 
nomic and  Social  Council  and  its  commissions. 

The  Icftu  and  the  Ifctu  now  are  among  the  cate- 
gory A  consultants  which  also  include  the  Wftxt. 
The  Transport  workers  are  in  category  B  which 
consists  of  the  more  specialized  groups.  Ameri- 
can labor  leaders  have  been  among  the  United 
States  delegations  to  the  International  Trade  Or- 
ganization Preparatory  Conference  and  to  confer- 
ences of  the  World  Health  Organization  and  of 
the  United  Nations  Educational,  Scientific  and 
Cultural  Organization  as  well  as  on  the  National 
Commission  for  Unesco. 

The  Operation  of  the  ILO 

I  have  reserved  mention  of  the  International 
Labor  Organization  until  now.  The  Ilo  is  the 
unique  intergovernmental  organization  which, 
since  1919,  constitutionally  includes  in  its  confer- 
ences and  Governing  Body,  representatives  of 
employers  and  workers  who  jointly  share  author- 
ity on  a  par  with  those  of  governments  in  formu- 
lating international  labor  standard  treaties.  It 
was  created  at  the  urgent  demand  of  a  few  great 
progressive  leaders  at  Versailles.  The  Ilo  is  ded- 
icated to  the  principle  that  enduring  peace  must 
be  founded  on  social  justice  and  that  the  pro- 
gressive improvement  of  conditions  among  work- 
ers anywhere  is  essential  to  the  well-being  of 
people  everywhere.  At  Philadelphia,  6  years  ago, 
the  principles  of  1919  were  reviewed  by  the  repre- 
sentatives of  employers,  workers,  and  governments 
of  member  nations  so  that  social  progress  could  be 
charted  even  while  war  was  being  desperately 
waged.  The  solemn  declaration  of  Philadelphia 
has  since  been  annexed  to  the  Ilo  Constitution  and 
demonstrates  general  acceptance  of  the  facts  that 
"poverty  anywhere  constitutes  a  danger  to  pros- 
perity everywhere,"  that  "labor  is  not  a  commod- 
ity," and  that  "freedom  of  expression  and  of 
association  are  essential  to  sustained  progress." 

Another  quote  from  the  declaration  of  Phila- 
delphia expresses  a  concise  and  far-reaching  phi- 
losophy about  labor's  role  in  world  affairs : 

The  war  against  want  requires  to  be  carried  on  with 
unrelenting  vigour  within  each  nation,  and  by  continuous 
and  concerted  international  effort  in  which  the  represent- 
atives of  workers  and  employers,  enjoying  equal  status 
with  those  of  Governments,  jdin  with  them  in  free  dis- 
cussion and  democratic  decision  with  a  view  to  the  pro- 
motion of  the  common  welfare. 

In  the  framing  of  that  declaration,  representa- 
tives of  the  workers  and  employers  of  this  coun- 
try shared  with  representatives  of  this  Govem- 

July  70,  1950 


ment.  The  declaration  itself  was  transmitted  by 
President  Roosevelt  to  both  Houses  of  the 

What  is  an  objective  estimate  of  Ilo's  contribu- 
tion to  the  world? 

The  Ilo  has  substantially  benefited  the  world  by 
building  within  the  minds  and  consciences  of  gov- 
ernments, employei's,  and  workers  a  realization  of 
national  duty  and  international  responsibility, 
progressively,  to  improve  the  conditions  of  life 
among  working  people.  Many  tangible  proofs 
exist  of  Ilo  service  to  member  nations,  but  it  has 
most  significantly  served  by  causing  responsible 
leaders  to  recognize  the  need  and  to  accept  the 
challenge  that  remedies  must  be  found  together. 

Role  of  the  Trade  Unionists 

In  the  State  Department,  the  importance  of 
having  expert  knowledge  of  what  labor  is  think- 
ing and  doing  is  evidenced  in  several  ways.  The 
Department  itself,  under  the  reorganization  of 
1949,  has  a  labor  adviser  in  each  of  the  four  geo- 
graphic areas,  headed  by  Assistant  Secretaries  of 
State,  one  in  the  German  Affairs  office,  which  has 
equivalent  status  because  of  its  operating  respon- 
sibilities, in  addition  to  the  Labor  Adviser  to  the 
Assistant  Secretary  for  Economic  Affairs,  who 
has  active  responsibility  for  relations  extending 
beyond  the  limits  of  any  single  area.  Their  duties 
concern  the  activities  and  interests  of  national  and 
international  labor  organizations  which  extend 
beyond  the  areas  of  any  single  geographic  area  and 
involve  political  as  well  as  economic  matters. 

The  Department  of  State  has  trade-union  con- 
sultants from  the  AFL  and  the  CIO  who  provide 
valuable  advice  and  liaison. 

Top  officers  of  the  Department,  beginning  with 
Secretary  Acheson,  have  meetings  with  represen- 
tative labor  leaders  from  time  to  time.  On  some 
matters,  such  as  policy  concerning  relations  with 
Spain  and  the  Argentine,  trade  unionists  freely 
criticize  the  Department's  policies  after  careful 
considerations  of  general  over-all  character  which 
included  American  labor's  well-known  views  on 
the  subject.  On  most  matters,  however,  American 
trade  unions  stand  firmly  in  support  of  American 
foreign  policy. 

The  Foreign  Service  of  the  United  States  now 
includes  about  30  labor  attaches  and  labor  re- 
porting officers,  including  several  trade  unionists, 
whose  duties  include  knowing  what  the  trade 
unions  are  thinking  and  doing,  advising  Embassy 

and  Departmental  officers  of  any  significant  de- 
velopments and  helping  to  transmit  some  under- 
standing to  trade  unionists  and  government  of- 
ficials about  what  American  labor  is  and  does. 

The  Department  of  Labor  also  recognizes  the 
responsibility  of  our  Govermnent  to  promote 
understanding  and  cooperation  among  the  work- 
ing people  and  the  trade  unions  of  all  countries 
accessible  to  us.  Under  the  Assistant  Secretary 
of  Labor,  Philip  Kaiser,  there  is  an  Office  of  In- 
ternational Labor  Affairs  with  which  our  office 
works  closely  and  cooperatively.  The  State  De- 
partment does  not  duplicate  the  technical  services 
of  the  Department  of  Labor  in  connection  with 
international  labor  standards.  An  interdepart- 
mental committee  on  international  social  policy 
provides  the  vehicle  for  formal  cooperation  among 
the  several  departments  concerned  with  specific 
problems.  Through  that  device,  position  papers 
on  labor  matters  which  may  arise  at  Ilo  or  United 
Nations  meetings  are  normally  formulated. 

The  Labor  Department  has  a  trade  union  ad- 
visory committee  on  international  labor  affairs 
which  has  furnished  a  useful  channel  for  con- 
sultation and  cooperation. 

EGA,  of  course,  has  formalized  labor's  partici- 
pation in  its  top  councils  here  and  abroad. 

Labor's  role  in  world  affairs  would  be  meaning- 
less if  economic  isolation  were  to  govern  its  poli- 
cies. The  IcFTu  Constitution  declares  as  one  of 
its  aims  to — 

advocate  with  a  view  of  raising  the  general  level  of  pros- 
perity, increased  and  properly  planned  economic  coopera- 
tion among  the  nations  in  such  a  way  as  will  encourage 
the  development  of  wider  economic  units  and  freer  ex- 
change of  commodities  and  to  seek  full  participation  of 
workers'  representatives  in  olBcial  bodies  dealing  with 
these  questions. 

The  pressing  need  among  free  peoples  is  to 
reduce,  as  rapidly  as  consistent  with  the  general 
welfare,  such  artificial  barriers  as  lead  to  mis- 
understanding, suspicion,  or  exploitation.  It  is 
to  be  devoutly  hoped  that  trade  unionists  in  all 
free  countries,  including  our  own,  can  lead  in  pro- 
moting the  brotherhood  of  peoples  and  finding 
the  ways  to  make  the  adjustments  necessary  to 
prevent  or  minimize  local  repercussions. 


My  experience  in  20  years  of  intimate  collabora- 
tion with  the  trade-union  movement  of  the  United 
States  and  of  considerable  experience  with  the 


Deparfmenf  of  State  Bulletin 

trade-union  movements  of  other  countries  leads 
me  to  assert  that  what  is  good  for  labor  inter- 
nationally is  generally  good  for  our  country  and 
all  other  countries  which  shai'e  our  basic  beliefs. 
Workers  constitute  around  one  third  of  the  popu- 
lation, and,  in  many  countries,  the  trade-union 
movement  which  speaks  on  their  behalf  includes  in 
its  membership  one  out  of  every  three  or  four 

The  chief  area  of  controversy  usually  comes  in 
the  exercise  of  judgments  as  to  whether  a  specific 
program  is  good  for  labor  and  for  the  general 
public.  Honest  men  of  good  will  can  diiler  objec- 
tively in  reaching  a  decision  and,  once  taken,  can 
work  to  carry  out  that  decision  even  if  it  does  not 
appear  to  any  of  them  to  be  perfect.  One  of  the 
most  unfortunate  aspects  of  the  trial  by  accusation 
through  which  the  Department  is  now  passing  is 
that  real  common  goals  have  been  obscured  by  con- 
troversy which  should  have  been  avoidable. 

I  refer  to  that  controversy  as  I  approach  what 
to  me  is  perhaps  the  greatest  contribution  which 
American  labor  can  make  in  world  affairs  at  this 
time.  Basic  American  foreign  policy  is,  I  hon- 
estly believe,  designed  to  accomplish  goals  which 
are  good  for  mankind  and  which  are  essential  in 
combating  the  threatened  enslavement  of  the 
minds  and  bodies  of  men. 

If  that  objective  is  true,  as  I  believe  it  to  be,  the 
next  problem  is  how  to  persuade  the  people  of  our 
country  and  of  the  world  that  these  goals  are 
their  goals  and  that  we  should  all  work  together 
to  attain  them.  It  is  my  opinion — and  one  shared 
widely  within  the  Department  of  State — that  the 
American  trade  unions,  in  cooperation  with  the 
International  Confederation  of  Free  Trade 
Unions — can  best  convince  the  workers  of  other 
lands  that  they  should  support  these  goals  in  their 
own  self-interest. 

If  I  know  trade  unions  at  all,  I  know  that  they 
must  rest  their  first  judgments  on  the  credentials 
a  man  carries.  If  he  carries  a  card  in  a  union,  it 
takes  him  as  a  brother  unless  he  proves  himself 
to  the  contrary.  If  he  carries  a  message  to  that 
union,  it  goes  on  the  assumption  that  it  is  designed 
to  be  in  its  interest.  So  with  American  foreign 
policy.  If  American  trade  unionists  will  take 
these  basic  American  foreign  policies  which  they 

believe  are  in  the  best  interests  of  their  brothers 
and  sisters  of  the  Icfttj  and  endorse  them  for  the 
consideration  and  support  of  associated  free  trade 
unions  around  the  world,  they  will  strike  a  deadly 
blow  at  the  propaganda  of  the  Cominform  and  the 
Wftu.  Labor's  endorsement  is  worth  far  more 
than  tons  of  newsprint  or  hours  of  radio  time  by 
official  spokesmen  so  far  as  convincing  workers  in 
other  lands  that  we  are  really  their  friends. 

The  essence  of  trade  unionism,  whether  non- 
denominational,  or  Socialist,  or  Christian,  is  to 
be  a  good  provider  and  to  share  its  strength  with 
its  brothers.  It  combines  the  patriotism  of  the 
loyal  citizen  with  the  brotherhood  among  workers 
which  is  truly  international.  With  that  combina- 
tion Labor's  role  in  world  affairs  must  be  active 
and  should  always  be  a  firm  foundation  for  the 
building  of  a  peace  and  social  justice. 

Special  Staff  To  Assist 
Ambassador  Grady  in  Iran 

[Released  to  the  press  June  28] 

Dr.  Henry  F.  Grady,  whose  appointment  as 
United  States  Ambassador  to  Iran  was  confirmed 
by  the  Senate  on  June  26,  will  have  the  assistance 
of  a  special  economic  staff,  some  of  whose  members 
have  preceded  him  to  Tehran  in  the  past  few  days. 
Ambassador  Grady,  who  has  been  in  Athens  con- 
cluding his  duties  there  as  Ambassador  and  Chief 
of  the  American  Aid  Mission,  is  expected  to  arrive 
in  Tehran  shortly. 

The  special  staff  will  assist  the  Ambassador  in 
assessing  the  present  economic  situation  in  Iran 
with  authority  to  recommend  to  both  Governments 
appropriate  steps  which  might  be  taken  to  bring 
about  improved  conditions  in  the  economic  life  of 
this  important  Middle  Eastern  country. 

The  economic  staff,  which  is  expected  to  remain 
in  Iran  for  about  3  months,  will  include  Leslie  A. 
Wheeler,  a  senior  Foreign  Service  officer  and  well- 
known  specialist  in  agricultural  economics; 
George  Woodbridge,  officer  in  charge  of  economic 
affairs,  Office  of  Greek,  Turkish,  and  Iranian  Af- 
fairs of  the  Department  of  State ;  and  Paul  Parker, 
the  Middle  East  representative  of  the  Treasury 
Department.  Leslie  L.  Kood,  a  Foreign  Service 
officer  assigned  to  the  Embassy,  will  serve  as  execu- 
tive secretary  of  the  staff.  It  is  expected  that  a 
few  additional  specialists  may  be  added  at  a  later 

My  10,  1950 


Answer  to  Soviet  Protest  on  MacArthur  Clemency  Circular 

U.S.  NOTE  OF  JUNE  8,  1950  > 

•  The  Department  of  States  aclmowledges  the  re- 
ceipt of  note  No.  74  of  May  11, 1950  from  the  Em- 
bassy of  the  Union  of  Soviet  Socialist  Kepublics. 
The  note  calls  attention  to  Circular  No.  5  "Clem- 
ency for  War  Criminals"  issued  by  command  of 
General  MacArthur  on  March  7,  1950.  It  is  al- 
leged that  the  circular  runs  counter  to  the  Charter 
of  the  International  Military  Tribunal  for  the 
Far  East  and  the  decision  of  the  Far  Eastern 
Commission  of  April  3, 1946,  relating  to  the  appre- 
hension, trial  and  punishment  of  war  criminals 
in  the  Far  East.  The  Government  of  the  United 
States  is  urged  to  take  measures  to  have  Circular 
No.  5  revoked. 

Inasmuch  as  the  matters  referred  to  in  the  note 
are  vrithin  the  jurisdiction  of  the  Far  Eastern 
Commission,  the  request  of  the  Soviet  Government 
should  have  been  addressed  to  the  Commission. 
In  this  connection  the  attention  of  the  Soviet  Gov- 
ernment is  called  to  the  minutes  of  the  193d  meet- 
ing of  the  Fec,  May  18,  1950  which  contain  a 
statement  of  the  views  of  the  United  States  on  the 
parole  of  Japanese  war  criminals.  Nevertheless, 
as  the  position  of  the  Soviet  Government  is  at 
variance  with  the  views  of  the  Government  of  the 
United  States,  those  views  are  set  forth  for  the 
Soviet  Government's  information. 

The  Supreme  Commander  for  the  Allied  Powers 
is  the  sole  executive  authority  for  the  Allied 
Powers  in  Japan,  and  as  such,  has  the  responsi- 
bility for  carrying  out  the  judgments  of  any  inter- 
national courts  appointed  by  him.  This  is  spe- 
cifically recognized  by  Article  17  of  the  Charter 
of  the  International  Military  Tribunal  for  the 
Far  East  and  by  paragi-aph  5  (b)  (1)  of  the  Far 
Eastern  Commission  policy  decision  of  April 
3,  1946. 

Under  Article  17  of  the  Charter  of  the  Inter- 
national Military  Tribunal  for  the  Far  East  the 
Supreme  Commander  for  the  Allied  Powers  may 
"at  any  time"  reduce  or  otherwise  alter  a  sentence 
of  the  Tribunal  except  to  increase  its  severity  and 
paragraph  5  (b)  (2)  of  the  Far  Eastern  Commis- 

'  Delivered  on  June  8  to  the  Soviet  Embassy  at  Wash- 
ington, and  released  to  the  press  on  the  same  date. 


sion  policy  decision  of  April  3,  1946,  confirms  that 
he  has  "the  power  to  approve,  reduce  or  otherwise 
alter  any  sentences,"  imposed  by  any  international 
courts  appointed  by  him.  Whether  the  Supreme 
Commander  can  exercise  his  power  to  reduce  or 
otherwise  alter  a  sentence  "only  while  considering 
the  question  of  the  approval  of  this  sentence"  as 
contended  in  the  Soviet  Government's  note  or 
whether  this  may  be  done  "at  any  time"  as  provided 
by  Article  17  of  the  Charter  quoted  above  is  un- 
necessary to  consider  at  this  time  as  no  reductions 
or  alterations  in  the  sentences  imposed  by  the  In- 
ternational Military  Tribunal  for  the  Far  East 
have  been  made  by  the  Supreme  Commander  and 
none  are  contemplated  by  him. 

The  Soviet  Government  is  apparently  under  the 
impression  that  paroles  such  as  are  provided  for 
by  Circular  No.  5  are  alterations  of  the  sentences 
imposed  by  the  International  Military  Tribunal. 
This  is  fundamental  error.  A  parole  is  in  no 
sense  an  alteration  of  a  sentence  but  permission  by 
the  appropriate  authority  for  the  convicted  crimi- 
nal to  serve  part  of  his  sentence  outside  of  prison 
under  certain  conditions  and  controls  and  subject 
to  being  returned  to  prison  for  serving  the  re- 
mainder of  the  sentence  if  the  conditions  of  the 
parole  are  violated.  This  method  of  dealing  with 
convicted  criminals  is  in  accordance  with  the  prac- 
tice in  enlightened  and  democratic  countries. 

For  the  reasons  indicated  the  Government  of 
the  United  States  declines  the  request  of  the  Soviet 
Government  that  it  take  measures  looking  to  the 
revocation  by  the  Supreme  Commander  of  his  Cir- 
cular No.  5. 

SOVIET  NOTE   OF  MAY  11,  1950 


The  Embassy  of  the  Union  of  Soviet  Socialist 
Republics,  under  instructions  from  the  Soviet 
Government,  has  the  honor  to  communicate  to  the 
Department  of  State  of  the  U.S.A.  the  following. 

On  March  7  of  this  year.  General  MacArthur, 
Commander-in-Chief  for  the  Allied  Powers  in 
Japan,  issued  Circular  No.  5  by  which  it  was  es- 
tablished that  all  the  war  criminals  who  are  now 
serving  terms  in  prison  in  Japan,  according  to 

Department  of  State  Bulletin 

sentence,  may  be  released  before  the  completion 
of  their  terms. 

As  is  well  known,  16  Japanese  major  war  crim- 
inals who  were  sentenced  to  imprisonment  by  the 
International  Military  Tribunal  for  the  Far  East, 
for  the  gravest  crimes  against  humanity,  are  serv- 
ing their  sentences  in  Japan. 

The  circular  of  the  Commander-in-Chief  repre- 
sents an  attempt  to  free  by  a  unilateral  order  the 
major  Japanese  war  criminals  from  completing 
their  punishment,  which  was  determined  and  came 
into  legal  force  by  the  sentence  of  the  Inter- 
national Tribunal,  in  which  representatives  of  the 
U.S.S.R.,  the  U.S.A.,  Great  Britain,  France, 
China,  the  Netherlands,  Canada,  Australia,  New 
Zealand,  India,  and  the  Philippines  participated. 
Such  acts  of  the  Commander-in-Chief,  directed 
towards  changing  or  entirely  reversing  the  de- 
cision of  the  International  Tribunal  established 
on  the  basis  of  the  agreement  between  the  U.S.A., 
Great  Britain,  the  U.S.S.R.,  and  China,  authoriz- 
ing the  said  Court  to  determine  the  degree  of 
punishment  for  the  major  Japanese  war  criminals, 
guilty  of  committing  the  gravest  crimes  against 
humanity,  constitute  a  gross  violation  of  the  ele- 
mentary norms  and  principles  of  international 

According  to  Article  17  of  the  Charter  of  the 
International  Military  Tribunal,  as  well  as  accord- 
ing to  clause  "B"  (2)  of  paragraph  5  of  the  de- 
cision of  the  Far  Eastern  Commission  of  April  3, 
1916  concerning  "the  apprehension,  trial,  and  pun- 
ishment of  war  criminals  in  the  Far  East,"  the 
Commander-in-Chief  has  the  right  to  reduce  or 
otherwise  alter  the  sentence  pronounced  by  the 
International  Tribunal  only  while  considering  the 
question  of  the  approval  of  this  sentence.  Neither 
the  Charter  of  the  Tribunal  nor  the  afore-men- 
tioned decision  of  the  Far  Eastern  Commission 
contain  any  provisions  which  would  give  the  Com- 
mander-in-Chief the  right  to  reduce  or  otherwise 
alter  the  sentence  after  it  has  been  approved  and 
put  into  effect. 

The  sentence  pronounced  by  the  International 
Tribunal  in  regard  to  Sadao  Araki,  Kiitsiro  Hir- 
anuma,  Mamoru  Sigemitsu  and  13  other  defend- 
ants was  approved  by  the  Commander-in-Chief 
after  consultation  with  the  Allied  Council  and 
with  the  representatives  of  other  powers  which  are 
members  of  the  Far  Eastern  Commission.  On 
November  24,  1948,  the  Commander-in-Chief  an- 
nounced his  approval  of  the  sentence  of  the  In- 
ternational Military  Tribunal  in  the  case  of  the 
said  Japanese  major  war  criminals.  In  addition, 
the  Commander-in-Chief  declared  that  he  did  not 
find  any  omissions  which  could  serve  as  a  basis 
for  introducing  any  modifications  in  the  sentence. 
By  his  approval  of  the  sentence  of  the  Inter- 
national Military  Tribunal,  the  Commander-in- 
Chief  exhausted  the  authority  granted  him  by  the 
Charter  of  the  International  Military  Tribunal 
for  the  Far  East  and  by  the  decision  of  the  Far 

Eastern  Commission  of  April  3,  1946,  concerning 
the  introduction  of  modifications  in  the  sentence 
pronounced  by  the  said  International  Military 
Tribunal.  By  issuing  the  circular  mentioned 
above,  the  Commander-in-Chief  exceeded  his 
authority,  strictly  limited  by  the  provisions  of  the 
appropriate  international  documents,  which  are 
the  Charter  of  the  International  Military  Tri- 
bunal and  the  policy  decision  of  the  Far  Eastern 
Commission  of  April  3,  1946,  concerning  "the 
apprehension,  trial,  and  punishment  of  war  crim- 
inals in  the  Far  East." 

The  Soviet  Government  calls  the  attention  of 
the  Govermnent  of  the  United  States  to  the  acts 
of  General  MacArthur,  mentioned  above,  which 
violate  the  agi'eement  concerning  the  establish- 
ment of  an  International  Military  Tribunal  for 
the  Far  East,  reached  between  the  U.S.S.R.,  the 
U.S.A.,  Great  Britain,  China,  and  other  countries 
participating  in  the  Tribunal,  and  which  run 
counter  to  the  Charter  of  the  International  Mili- 
tary Tribunal  for  the  Far  East  and  the  decision 
of  the  Far  Eastern  Commission  of  April  3,  1946. 
The  Soviet  Government  urges  the  Government  of 
the  United  States  to  take  measures  immediately 
to  revoke  the  afore-mentioned  illegal  Circular  No. 
5  of  March  7  of  this  year  in  regard  to  the  Japanese 
major  war  criminals  sentenced  by  the  Interna- 
tional Military  Tribunal  for  the  Far  East. 

Soviet  Walk-Outs  Flout 

Democratic  Process  in  United  Nations 

Statement  hy  Francis  B.  Sayre 

U.S.  Representative  on  the  Trusteeship  Council'^ 

The  withdrawal  of  the  Soviet  representative 
from  this  meeting  repeats  what  now  appears  to 
be  the  standard  Soviet  practice  in  the  United  Na- 
tions organizations  where  China  is  represented. 

Under  the  Council's  rules  of  procedure,  any 
question  regarding  the  credentials  of  any  repre- 
sentative on  the  Trusteeship  Council  is  decided 
by  the  majority  vote  of  the  Council  after  exami- 
nation of  the  credentials  by  the  Secretary-Gen- 
eral. This  has  been  done  and  the  Council  has 
made  its  decision. 

The  United  States  accepts  the  decision  just 
taken  by  the  Council.  If  the  decision  had  been 
otherwise,  the  United  States,  although  opposed 
to  it,  would  have  been  prepared  to  abide  by  that 
decision  and  continue  its  cooperation  in  the  work 
of  the  Council.  I  would  ask  the  Trusteeship 
Council  members  to  consider  the  prospects  for  ef- 
fective action  by  the  Council  or  any  other  United 
Nations  organizations  if  all  the  members  showed 

"  Made  on  the  occasion  of  the  withdrawal  of  the  Soviet 
representative  from  the  meeting  of  the  Trusteeship  Coun- 
cil on  June  1,  1950,  and  released  to  the  press  by  the  U.S. 
Mission  to  the  United  Nations  on  the  same  date. 

July  10,   J  950 


the  same  arbitrary  and  dictatorial  attitude  as  the 
representative  of  the  U.S.S.R.  and  absented  them- 
selves or  refused  to  recognize  decisions  of  the 
organizations  concerned  whenever  their  own  views 
on  any  particular  problem  were  not  accepted. 
Clearly,  such  an  attitude  would  make  it  impossible 
for  the  United  Nations  organizations  to  operate 

Needless  to  say,  neither  this  Council  nor  other 
United  Nations  organizations  and  agencies  can 
for  one  moment  agree  to  the  doctrine  that  the  will- 
ful absence  of  a  single  member  can  have  any  ef- 
fect whatever  upon  the  validity  of  decisions  taken. 
As  members  of  this  Council  are  well  aware,  the 
Trusteeship  Council  operated  during  most  of  its 
first  two  sessions  as  well  as  during  its  last  session 
without  the  benefit  of  Soviet  participation.  The 
Council  is  fully  able  to  do  so  again. 

The  very  kernel  of  democracy  is  the  acceptance 
by  all  of  the  will  of  the  majority  under  a  system 
which  protects  the  rights  of  the  minority.  With- 
out this,  democratic  government  and  world  co- 
operation become  impossible.  The  growing  prac- 
tice on  the  part  of  the  Soviet  Government  to  re- 
fuse to  accept  the  vote  of  the  majority  is  an  attack 
upon  the  fundamental  principles  of  democracy  and 
upon  the  United  Nations  itself.  It  is  tantamount 
to  an  open  flouting  of  the  burning  desire  of  well- 
nigh  all  the  peoples  of  the  world  for  peace  and 
world  cooperation. 

Czechoslovak  U.N.  Representative 
Resigns;  U.S.  Grants  Asylum 

[Released  to  the  press  June  13] 

Vladimir  Houdek,  on  May  16,  1950,  announced  his  resig- 
nation as  permanent  representative  of  Czechoslovakia  to 
the  United  Nations  and  wrote  as  follows  to  the  Acting 
Secretary-Oeneral  of  the  United  Nations. 

The  recent  events  in  Czechoslovakia  forced  me  as 
Permanent  Representative  of  the  Czech  Republic 
to  the  United  Nations  to  subject  my  relations  to  the 
government  I  represent  to  a  thorough  and  funda- 
mental examination.  These  events  show  me  that  a 
few  individuals  installed  in  a  "Rokossowski  way" 
in  the  top  positions  mechanically  apply  methods 
which  are  flagrant  contradiction  to  our  best  tradi- 
tions. Czechoslovak  thus  ceased  to  exist  as  an  in- 
dependent state.  In  protest  of  this  development  I 
am  submitting  my  resignation  from  the  post  of 
the  Permanent  Representative  of  Czechoslovakia 
to  the  United  Nations. 

At  the  same  time,  Mr.  Houdek  addressed  the  following 
communication  to  President  Truman. 

JVIr.  President  :  As  a  result  of  the  recent  events 
in  Czechoslovakia  I  deemed  it  my  duty  to  resign 
today  from  the  post  of  the  Czechoslovak  Perma- 
nent Representative  to  the  United  Nations.  I  did 
so  in  order  to  protest  before  the  whole  world 
against  the  methods  which  are  being  used  in 
Eastern  European  countries,  including  my  own, 
against  the  people  who  have  brought  the  greatest 
sacrifices  in  the  interest  of  their  nation  both  dur- 
ing the  war  and  after.  These  methods  have  been 
imported  to  our  country  by  a  few  individuals  in- 
stalled in  a  "Rokossowski  way"  in  the  top  positions. 
They  ai'e  in  flagrant  contradiction  to  our  best  tra- 
ditions. The  treatment  of  the  American  diplomats 
by  the  Czechoslovak  Ministry  for  Foreign  Aii'aira 
recently  was  but  another  expression  of  this  atti- 
tude. I  cannot  agree  with  this  development.  I 
have  therefore  resigned  from  my  present  position 
and  ask  you  to  grant  me  an  asylum  for  me  and  my 
family  in  the  United  States. 

I  arrived  in  the  United  States  with  my  wife  and 
daugliter  in  194G,  and  have  been  here  ever  since, 
first  as  the  member  of  the  Czechoslovak  Embassy 
in  Washington  and  later  as  the  Permanent  Repre- 
sentative of  Czechoslovakia  to  the  United  Nations. 
During  our  stay  in  Washington  a  second  daughter 
of  ours  was  born.  Prior  to  my  arrival  in  the 
United  States  I  was  the  Secretary  for  Slovak  Af- 
fairs to  the  late  President  Benes. 

In  submitting  my  request,  I  wish  to  say  that  the 
only  relatives  we  have  in  this  world  outside  Czech- 
oslovakia are  living  in  the  United  States.  This 
not  being  the  only  reason  I  hope  that  the  asylum 
for  us  will  be  granted. 

These  public  statements  indicate  that  Mr.  Hou- 
dek can  retain  no  ties  with  the  Czechoslovak  Com- 
munist dictatorship.  Were  he  to  be  returned  to 
Czechoslovakia,  his  life  would  of  course  be  forfeit, 
other  potential  defectors  would  be  effectively  dis- 
couraged, and  the  Communist  security  apparatus 
would,  thereby,  have  gained  a  marked  benefit. 

It  has  been  the  traditional  policy  of  the  United 
States  to  give  sympathetic  consideration  to  the 
granting  of  asylum  to  political  refugees.  How- 
ever, when  requests  are  made  to  this  Government 
for  political  asylum,  the  Department  considers 
each  according  to  its  individual  circumstances. 
After  careful  consideration  of  Mr.  Houdek's  re- 
quest, this  Government,  in  accordance  with  the 
procedure  for  dealing  with  such  matters,  has  deter- 
mined that  it  will  not  require  him  to  depart  from 
the  United  States  at  this  time. 


Department  of  State  Bulletin 


Address  hy  Secretary  Acheson^ 

It  is  a  great  pleasure  for  me  to  be  with  you  tliis 
morning  and,  particularly,  a  great  pleasure  to  be 
introduced  by  my  own  governor  of  Maryland. 
Last  night,  as  Governor  Lane  said,  you  listened  to 
Mr.  Hoffman  who  gave  you  a  very  broad  and  com- 
prehensive survey  of  the  problems  which  exist  in 
the  field  of  the  foreign  relationships  of  the  United 
States.  This  morning,  I  want  to  take  one  of  those 
problems  and  put  it  in  a  much  narrower  frame 
than  we  had  last  night.  I  am  taking  this  particular 
problem,  because  it  is  of  very  great  practical  im- 
portance to  all  of  us  here.  It  is  of  great  impor- 
tance to  the  United  States.  It  is  of  great  impor- 
tance to  the  Secretary  of  State  as  one  who  will 
have  charge,  I  hope,  of  administering  the  law 
which  is  about  to  be  implemented  by  the  Congress, 
and  it  is  a  program  in  which  you  governors  as  a 
practical  matter  can  be  of  very  great  assistance. 

First  of  all,  let  me  put  this  program  in  its 

I  have  recently  come  back  from  meetings  abroad 
in  which  we  have  been  dealing  primarily  with  the 
defensive  system  of  the  Western  world.  That 
whole  defensive  system  is  to  create  a  shield  behind 
which  the  great  constructive  actions  of  the  world 
can  go  on.  Our  military  programs  are  not  an  end 
in  themselves;  they  are  a  means,  and,  just  as  in 
the  early  days,  some  members  of  the  community 
have  to  protect  those  people  who  are  working  in 
the  fields,  who  are  building  houses,  who  are  doing 
the  constructive  tasks  of  the  community.  So,  to- 
day, we  must  have  this  protective  shield.    I  have 

'  Made  before  the  Council  of  State  Governments,  White 
Sulphur  Springs,  W.  Va.,  on  June  20  and  released  to  the 
press  on  the  same  date. 

spoken  in  other  places  about  the  keystone  role  of 
the  Atlantic  community  in  the  constructive  tasks 
of  the  world,  and  I  shall  not  talk  about  that  this 
morning.  This  great  Western  community  with  its 
tremendous  skills,  with  its  great  productive  ca- 
pacity, must  be  in  the  very  center  of  the  whole 
effort  of  the  free  world  to  make  itself  strong,  and 
virile,  and  self-reliant. 

What  I  should  like  to  mention  today  is  a  task 
which  belongs  to  the  Western  world  in  its  rela- 
tions with  less  fortunate  peoples.  We  have  many 
I^roblems  of  our  own,  and  we  will  work  those  out 
in  the  West.  We  have  to  take  barriers  away  from 
the  flow  of  trade ;  we  have  to  get  greater  coopera- 
tion in  the  intellectual  and  other  spheres ;  we  have 
to  make  our  own  views  known  throughout  the 
world  much  more  vigorously  than  we  are  doing 
at  present ;  but  those  are  intra-Western  problems. 
There  are  another  series  of  problems  which  have 
to  do  with  the  relation  of  the  Western  world  to  that 
vast  unnumbered  millions  of  people  who  live  in 
Asia,  and  in  Africa,  and  in  the  Middle  East.  These 
areas  are  called  the  underdeveloped  portions  of 
the  world. 

It  is  in  regard  to  this  problem  that  I  should 
like  to  talk  with  you  this  morning  and  that,  to  be 
very  brief,  has  to  do  with  what  has  become  known 
as  the  Point  4  Program — that  is,  the  program  of 
technical  assistance.  It  is  a  program  which  was 
originally  announced  by  the  President  in  his 
inaugural  address  in  1949.  The  law  which  permits 
us  to  go  forward  with  technical  assistance  has 
been  passed  by  the  Congress,  and  the  matter  of 
providing  funds  for  it  is  now  before  the  House 
and  the  Senate ;  and  I  want  to  talk  for  a  few  mo- 
ments about  the  nature  of  that  problem  and  about 

Jo/y  JO,  7950 


the  help  which  you  governors  can  give  to  us  in 
carrying  it  out. 

I  think  the  program  has  been  very  much  mis- 
understood. In  many  areas,  it  is  talked  of  as 
though  it  were  a  give-away  program,  a  program 
which  is  going  to  take  hundreds  and  hundreds  of 
millions  of  dollars. 

That  is  not  what  we  are  talking  about.  We  are 
talking  about  a  program  of  technical  assistance. 
It  is  a  jirogram  which  costs  comparatively  little 
money,  and  the  money  which  we  have  asked  from 
the  Congress  is  very  small  indeed  compared  to 
what  may  be  accomplished.  It  is  very  hard  for 
you  in  the  United  States  to  understand  what  can 
be  accomplished  by  the  program  because  the  things 
we  are  doing  are  common  phrases  to  you. 

Every  one  of  j'ou  governors  has  under  you  de- 
partments which  are  doing  the  sort  of  thing  which 
we  want  to  carry  to  peoples  in  other  parts  of  the 
world,  and  I  venture  to  say  that  it  does  not  take  20 
minutes  a  week,  or  20  minutes  a  month,  perhaps, 
of  your  time.  Take,  for  instance,  the  question  of 
the  water  supply.  I  am  not  talking  about  the 
quantity — I  undei'stand  that  Governor  Dewey  has 
a  problem  about  that,  and  I  know  there  are  prob- 
lems in  the  Western  States  that  have  to  do  purely 
with  the  quantity  of  water  which  is  available.  I 
am  talking  about  the  purity  of  the  water  which  is 
available.  To  you,  that  is  just  a  thing  that 
happens  automatically. 

Every  one  of  your  cities,  every  one  of  your  towns, 
has  a  water  supply.  There  is  a  municipal  official 
in  most  cases,  sometimes  a  State  official,  who  every 
few  hours  takes  a  sample  out  of  the  tap  into  his 
test  tube,  does  some  things  which  I  do  not  under- 
stand with  it,  and  automatically  issues  some  orders 
so  that  the  chlorination  is  increased,  or  something 
else  is  put  in  the  water.  You  never  pay  any  atten- 
tion to  it,  and,  yet,  this  is  one  of  the  most  funda- 
mental problems  to  millions  and  millions  of  people 
in  the  world. 

There  are  areas  where  there  is  not  a  single  drop 
of  water  which  we  can  drink  without  getting  some 
dreadful  intestinal  disease,  and  one  of  the  ex- 
traordinary things  to  visitors  from  the  underde- 
veloped parts  of  the  world  who  come  to  the  United 
States  is  to  see  people  go  to  a  tap,  get  some  water 
in  a  glass,  and  drink  it.  They  are  perfectly 
amazed  by  what  happens.  One  man  who  came  to 
us  from  the  Far  East  was  on  the  fifteenth  floor  of 
his  hotel,  and  he  saw  somebody  taking  some  water 
out  of  the  tap,  and  he  was  amazed  by  this — and  we 

said :  "Are  you  impressed  by  the  fact  that  we  have 
running  water  on  the  fifteenth  floor?"  And  he 
replied :  "We  are  not  so  much  surprised  by  that  as 
by  the  fact  that  you  drink  it!" 

That  is  the  sort  of  thing  that  is  so  important. 
And  how  can  you  help  us?  Well,  here  is  a  prac- 
tical illustration. 

State  Assistance 

A  few  years  ago,  we  asked  Governor  Youngdahl, 
of  Minnesota,  if  he  would  lend  us  one  of  his 
experts  from  the  Minnesota  Department  of  Health. 
His  name  was  Edmund  Wagner,  and  the  State  of 
Minnesota  lent  him  to  us,  and  we  sent  him  to 
Brazil  to  work  out  a  water  system  on  an  experi- 
mental basis  for  a  small  town.  Tliis  town  was  on 
the  banks  of  the  Amazon,  and  people  would  go  to 
the  river,  and  then  dip  out  a  bucket  of  water,  take 
it  home,  and  wash,  and  use  it  for  cooking  and 
drinking ;  and  everybody  in  this  town  was  ill  from 
intestinal  parasites  which  came  from  this  water, 
and  it  had  a  very  serious  effect  on  the  people. 

Mr.  Wagner  worked  out  a  very  simple  water 
system  for  this  town  on  the  Amazon,  the  sort  of 
system  which  would  be  almost  too  primitive  for 
most  American  communities,  put  it  in  operation, 
and  within  2  or  3  years  this  town  began  to  be 
trebled,  and  again  people  came  from  miles  around, 
because  this  was  one  place  where  you  could  get 
pure  water.  And  then,  the  pumping  system  al- 
lowed the  town  to  get  away  from  the  banks  of  the 
Amazon,  and  it  went  into  the  higher  gi-ound,  and 
the  water  went  up  there.  But  here  in  the  middle 
of  Brazil  is  a  city  which  is  the  envy  of  that  entire 
country  because  one  officer  from  the  State  of 
Minnesota  went  down  and  put  in  an  experimental 

Not  long  ago,  we  asked  Governor  Dever,  of  the 
State  of  Massachusetts,  to  lend  us  Clarence  Ster- 
ling of  their  Department  of  Sanitation.  He  went 
to  Santiago,  Chile,  and  there  he  put  into  effect  a 
sewer  system.  The  effect  of  this  was  so  startling 
in  Chile  that  all  of  Latin  America  asked  for  Mr. 
Sterling,  and  he  spent  several  years  in  South 
America  putting  these  systems  into  country  after 
country,  and  now  he  is  back  again  in  Massachusetts 
with  this  work  well-done. 

Governor  McMath  has  lent  us  William  Bell, 
one  of  their  sanitary  engineers,  who  went  to  Mex- 
ico to  install  a  sanitation  system.  The  city  of 
Seattle,  Washington,  recently  released  its  Public 
Health  Director,  Dr.  Emil  Palmquist,  and  its  Di- 


Department  of  State  Bulletin 

rector  of  Sanitation,  Frederick  Aldrich,  and  they 
undertook  a  public  healtli  mission  in  Iran.  An- 
other liealth  man  from  Governor  Langlie's  State  of 
Washington,  Herbeit  Colwell,  went  out  with  the 
ECA  mission  to  Greece  to  fight  malaria.  He 
started  working  witli  the  United  Nations  Organi- 
zation, the  World  Health  Organization,  and  the 
ECA ;  and  this  man,  and  a  half  dozen  people  work- 
ing on  this  whole  scheme  in  Greece,  have  reduced 
the  incidence  of  malaria  in  Gi'eece  from  2  million 
cases  a  j'ear  to  50  thousand. 

Now,  there  is  another  area  in  which  we  need 
help  from  you.  When  one  of  you  governors  takes 
office,  you  have  whole  operating  school  systems,  tax 
systems,  road  systems.  All  of  that  is  working. 
You  have  school  boards  and  road  districts,  and 
all  of  tliat  sort  of  thing.  Since  the  end  of  the  war, 
there  are  nine  countries  in  Asia  which  have  become 
independent.  Those  nine  countries  have  a  popu- 
lation of  over  600  million  people,  and,  in  many  of 
them,  the  entire  system  of  government  has  to  be 
started  from  the  ground  up. 

Success  of  Individual  Effort 

Many  of  these  governments  have  asked  us  for 
experts  who  will  go  out  to  help  them  to  organize 
the  simple  administration  of  government  depart- 
ments, and  we  are  going  to  ask  you  for  help  in 
getting  them  to  do  that  work.  Just  a  few  years 
ago,  for  instance,  the  Government  of  Bolivia 
wanted  to  set  up  a  system  for  running  rural  schools. 
They  did  not  know  how  to  do  that.  So,  we  asked 
the  Governor  of  New  Mexico  if  he  would  lend  us 
one  of  his  men,  which  he  did.  That  man  went 
down  to  Bolivia,  and  set  up  a  very  simjile  system 
of  count}'  school  administration.  This  was  so 
sensational  in  Bolivia  that  six  countries  in  South 
America  asked  for  this  officer,  Ernest  Maes,  of 
New  Mexico,  who  went  to  the  six  countries  and  set 
up  this  county  school  administrative  system. 

Governor  Duff  has  lent  us  Dr.  Powers,  who  is 
reorganizing  the  normal  schools  in  Ecuador.  The 
Director  of  Vocational  Education  of  Connecticut, 
Dr.  A.  S.  Boynton,  has  been  lent  to  us  by  Governor 
Bowles,  who  is  setting  up  industrial  schools  in 

Now  there  are  dozens  of  other  State  officials  and 
municipal  officials  who  are  out  doing  this  work  in 
the  area  in  which  we  have  been  j^ermitted  to  do 
it  in  the  past — which  has  been  largely  in  South 
America.  Now,  if  this  Point  4  legislation  is 
passed,  we  will  have  an  oi^portmiity  to  carry  this 

work  into  other  areas  of  the  world  which  need  it 
very  badly,  and  those  are  particularly  in  Asia  and 

In  the  agricultural  field,  for  instance,  in  which 
you  are  so  rich  in  talent,  we  will  need  a  great  deal 
of  help.  Recently,  we  had  a  problem  in  Liberia. 
The  dry  season  in  Liberia  used  to  be  called  a 
"hungry  season,"  because  they  did  not  know  how 
to  grow  food  during  that  dry  period,  and  there 
was  a  great  deal  of  starvation  and  a  great  deal  of 
siclmess  in  Liberia  during  the  dry  season.  We 
asked  Governor  Fuller  Warren  if  he  would  lend  us 
a  man  who  could  work  on  that  problem,  and  he 
lent  us  Frank  Pindar,  who  went  to  Liberia. 

Now,  this  did  not  take  millions  of  dollars  or 
vast  equipment.  In  fact,  Frank  Pindar  went  off 
with  a  small  amount  of  baggage,  and  he  had  a  sack 
of  corn,  half  dozen  ordinary  hoes,  and  a  shotgun. 
We  asked  him  who  the  shot  gun  was  for,  and  he 
said  that  was  for  crows,  so  we  thought  it  was  all 
right  to  let  him  take  it.  He  went  to  Liberia,  and 
there  he  taught  people  how  to  gi-ow  vegetables  in 
a  dry  season — the  simi^lest  kind  of  irrigation,  the 
simplest  sort  of  cultivation  of  the  soil  to  bring 
whatever  moisture  there  was  up  to  the  surface — 
and  the  result  of  all  of  that  now  is  that  the  work 
of  this  one  man  in  Liberia  has  completely  dissi- 
pated this  "hungry  season."  People  can  now  eat 
during  the  dry  season  in  Liberia. 

Now,  these  people  that  we  send  out  are  not 
merely  technicians;  they  are  not  merely  people 
to  teach  this,  that,  or  the  other  technique;  but 
they  are  the  great  apostles,  the  gi-eat  spreaders  of 
democracy.  One  of  the  things  that  we  have 
learned — and  we  have  learned  it  the  hard  way — 
is  that  great  programs  which  seem  so  important 
to  us  from  the  American  side  look  quite  dif- 
ferently to  the  people  who  are  on  the  receiving 
end.  We  often  think  that  when  we  put  forward 
a  program  which  fills  ship  after  ship  of  commodi- 
ties, and  off  they  go  to  various  parts  of  the  world, 
that  the  people  on  the  receiving  end  must  be  very 
much  impressed  by  our  tremendous  productive 
power,  by  our  generosity,  and  all  that  sort  of 
thing.  We  see  it  from  the  outgoing  point  of  view. 
We  see  great  warehouses  full  of  goods;  we  see 
tremendous  ocean  liners  full  of  things. 

That  is  not  the  way  it  looks  on  the  other  end. 
The  way  it  looks  to  the  person  in  the  Far  East  or 
Southeast  Asia  is  not  from  the  point  of  view  of 
the  vast  ship  crowded  with  material  coming  in, 
but  it  looks  to  him  like  a  bowl  of  rice.    Wlien  there 

July   10,   1950 


is  a  little  bit  of  rice  in  it,  it  is  not  terribly  impres- 
sive. That  is  what  he  sees,  and  we  have  to  look 
at  our  program  through  other  people's  eyes.  One 
of  the  important  things  is  that  we  should  have 
these  apostles  of  democracy  who  go  out  and  work 
with  people — not  merely  officials  who  work  with 
officials  of  government,  not  merely  people  who  live 
in  the  good  hotels  and  walk  into  government 
offices,  but  men  who  go  into  the  back  country;  a 
man  who  can  take  a  simple  agricultural  instru- 
ment and  show  people  how  to  use  it,  a  man  who  can 
explain  the  difference  between  different  types  of 
seed.  If  you  can  improve  by  10  percent  the  quality 
of  rice  seed  in  Asia,  you  have  almost  solved  the 
food  problem.  It  is  as  simple  as  that.  And,  yet, 
the  men  who  go  out  have  to  work  with  the  people. 
You  can  not  say  to  them,  "This  is  the  way  it  is 
done  in  the  agricultural  college  of  Iowa,"  or  some- 
thing of  that  sort.  You  have  to  understand  their 
nature.  You  have  to  understand  their  back- 
ground, their  religious  or  other  prejudices,  and 
you  have  to  teach  them  how  to  help  themselves. 

Cooperation:  An  American  Tradition 

That  is  what  these  men  that  you  have  lent  us 
have  been  doing.  This  is  in  the  American  tradi- 
tion. This  is  the  right  way  for  America  to  act. 
If  you  think  back  over  our  history,  and  you  think 
of  tlie  great  people  who  did  this  sort  of  thing  in 
our  early  days,  you  remember  Eleazer  Wheelock 
going  up  the  Connecticut  Kiver  Valley  when  the 
frontier  was  at  Springfield — and  going  beyond  the 
frontier  up  to  Hanover  to  start  a  school  for  the 
Indians.  And  you  remember  Pere  Marquette  going 
out  into  the  Micliigan  area  with  nothing  except 
what  he  had  on  his  back — but  going  out  to  teach 
and  instruct  and  live  with  these  people.  And  over, 
and  over,  and  over  again  this  was  true  in  the  early 
days  of  the  United  States.  Now,  the  fi'ontier  has 
gone  very  much  beyond  our  own  country,  and  here 
is  another  challenge  to  Americans.  And  we  need 
not  only  these  highly  skilled  men  that  you  can  give 
us,  but  we  need  younger  men,  too.  I  have  often 
wondered  whether  that  spirit  of  adventure  and 
hardship  still  exists  in  the  United  States.  I  think 
it  does,  but  I  think  it  is  an  open  question.  1  won- 
der how  many  volunteers  from  all  our  colleges, 
who  are  graduating  this  June,  you  would  get  if 
you  went  to  them  and  said,  "I  want  to  offer  you  a 
hard  life;  you  are  not  going  to  be  paid  much;  you 
are  going  to  live  in  backward  areas  of  the  world 
where  there  is  disease  lurking  everywhere;  you 

are  going  to  work  and  to  live  with  people  who 
know  nothing  and  are  going  to  be  very  suspicious 
of  you.  But  here  is  one  of  the  great  tasks  which 
the  United  States,  and  the  United  Nations,  and 
the  other  Western  countries  can  bring  to  the  under- 
developed parts  of  the  world.  Will  you  go  out  and 
take  this  missionary  task  with  you?"  How  many 
would  go?  I  think  we  would  be  surprised.  I 
think  a  lot  of  boys  and  girls  would  do  that. 

I  am  talking  to  j'ou  about  this  program  not  be- 
cause it  is  exciting  or  anything  of  that  sort ;  it  is  not 
nearly  as  much  fun  to  talk  about  this  or  to  listen 
to  this  as  it  is  to  talk  about  what  men  in  the  Krem- 
lin are  up  to;  that  is  much  more  fun  than  this  sort 
of  thing,  but  this  is  something  we  can  do. 

People  come  to  me,  and  they  say  foreign  policy 
is  all  right,  and  we  like  to  read  this,  and  that,  and 
the  other  columnist,  but  how  can  the  American 
people — how  can  a  person  participate  in  our  for- 
eign policy  ?  Well,  here  is  a  way  you  can  partici- 
pate in  it.  Every  one  of  you  governors  can  helj) 
us.  We  will  be  coming  to  you  and  asking  you  for 
men,  and  it  is  going  to  be  very  inconvenient  for 
you.  You  will  not  want  to  let  some  of  these  people 
go,  but  we  are  going  to  ask  you  to  do  that.  You 
can  explain  to  your  people  how  important  it  is,  and 
we  are  going  to  ask  you  to  get  some  volunteers 
from  the  younger  people  in  your  States,  and  you 
can  explain  that  to  them.  And  it  seems  to  me  that 
if  the  people  of  your  communities  could  feel  that 
they  had  a  part  in  this  work  because  their  city 
engineer  or  the  head  of  their  State  health  depart- 
ment is  going  to  a  particular  country,  and  if  they 
could  follow  his  work,  and  if  they  could  get  letters 
from  him  which  are  printed  in  the  papers,  and  if 
everybody  in  that  community  could  follow  what  a 
man  they  know,  with  a  few  assistants,  is  doing  in 
some  distant  part  c  f  the  earth,  then  you  would  get 
this  real  feeling  that  the  world  is,  after  all,  one 
world  and  it  is  not  as  large  as  it  seems. 

This  program  is  now  before  Congress.  It  went 
before  the  Congress  as  a  complete  bipartisan  pro- 
posal. It  was  worked  out  in  the  House  and  Senate, 
and  bills  were  put  in  by  Republicans  and  Demo- 
crats jointly.  The  Senate  Conunittee  on  Foreign 
Relations  reported  it  out  unanimously.  The 
House  committee  was  practically  unanimous.  It 
was  passed  by  a  very  large  majority  in  both 
Houses.  Now,  we  come  to  the  very  difficult  thing 
of  getting  the  money  for  it,  and,  now,  we  are 
running  into  attacks — a  narrow  attack,  isolation- 
ist points  of  view  are  brought  up,  and  the  whole 


Department  of  State  Bulletin 

program  is  being  misrepresented  and  damaged. 
The  sort  of  attack  that  we  have  was  ilhistrated  the 
day  before  yesterday  by  two  men  who  attacked  it 
for  exactly  opposite  reasons.  One  attacked  it  be- 
cause we  had  been  talking  with  various  countries 
about  programs  in  advance  of  the  Congress  appro- 
priating the  money,  and  we  were  criticized  very 
severely  by  him  for  doing  that.  He  said,  "Here 
you  are  putting  pressure  on  the  Congress.  You  go 
and  talk  to  this,  that,  and  the  other  country  about 
a  program  before  Congress  has  given  you  money. 
That  is  very  bad."  And  he  had  hardly  gotten 
through  with  that  before  another  man  got  up  and 
said,  "The  trouble  with  you  fellows  is  that  you 
haven't  got  a  fully  detailed  program.  Why  don't 
you  talk  to  these  countries  and  find  out  exactly 
what  it  is  going  to  cost  before  you  come  in  and  ask 
us  for  the  money  T'  Well,  you  cannot  win.  You 
get  it  coming  and  going  on  that  basis. 

But  I  believe  that  the  Congi'ess  is  going  to  give 
us  the  money  for  this  program.  I  believe  it  will 
have  the  most  tremendous  effect  in  parts  of  the 
world  which  it  is  very  difficult  to  reach  in  any 
other  way.  I  have  been  asked:  Wliy  don't  you 
set  up  a  great  Marshall  Plan  for  Asia  ?  Perhaps, 
later  in  the  day,  Ambassador  Jessup  can  talk  with 
you  about  the  problems  of  Asia.  But  you  will  find 
that  it  is  wholly  different  from  the  problem  of 
Europe.  In  Europe,  you  have  a  more  or  less 
homogeneous  community  with  problems  which  are 
fairly  identical,  people  who  are  used  to  working 
together  and  understand  that  each  one  is  depend- 

ent on  the  other.  In  Asia,  you  have  vast  distances, 
different  peoples,  peoples  who  are  quite  ditferent 
racially,  whose  languages  are  wholly  different,  who 
have  absolutely  no  common  experience  of  any  sort 
at  all.  Most  of  these  Asian  countries  have  had 
their  connections  with  the  world  through  individ- 
ual Western  countries  and  not  with  one  another. 
They  do  not  want  a  Marshall  Plan  for  themselves; 
they  do  not  want  to  be  brought  into  one  common 
operation.  Each  one  is  dealing  with  its  own  prob- 
lem in  its  own  way,  and  we  have  got  to  adapt  our- 
selves to  the  world  in  which  we  live.  We  might 
wish  it  were  different,  but  it  is  not  different,  and, 
therefore,  we  must  adapt  ourselves  to  the  situation 
which  confronts  us.  In  doing  that,  we  can,  with 
this  technical  assistance  program,  be  of  real  help  to 
individual  people  in  this  great  part  of  the  world 
and  make  them  realize  that  it  is  not  merely  the 
Communists  who  send  people  out  to  live  in  the 
country  and  teach  them  doctrines  of  one  sort  but 
that  we  also  are  willing  to  send  people  who  will  live 
with  them  and  that  we  are  not  teaching  them 
doctrines.  They  must  realize  that  we  are  teach- 
ing them  how  to  do  things  which  are  going  to  let 
them  develop  in  their  own  way  and  that  we  are 
helping  them,  not  trying  to  coerce  them,  or  rule 
them,  or  use  them  for  our  own  purposes.  That,  I 
submit  to  you,  is  the  purpose,  the  significance,  the 
object  of  this  Point  4  Program. 

I  hope  very  much  that  we  can  have  the  support 
of  all  of  you  governors  not  only  in  getting  the 
authority  to  do  it  but  also  in  carrying  it  out  after 
we  have  gotten  that  authority. 

The  Need  for  an  International  Trade  Organization 

Statement  hy  Charles  F.  Brannan 
Secretary  of  Agriculture  ^ 

In  appearing  before  you  to  discuss  the  proposed 
charter  for  an  International  Trade  Organization, 
I  should  like  to  speak  particularly  of  the  relation 
of  this  charter  to  United  States  agriculture. 

Agriculture  has  a  very  real  interest  in  this 
charter.  American  agriculture  produces  a  good 
deal  more  of  many  important  agricultural  prod- 
ucts than  is  consumed  in  the  United  States,  in- 
cluding wheat,  cotton,  tobacco,  lard,  and  many 
fruits  and  vegetables.     In  the  crop  year  1948^9, 

'  Made  before  the  House  Committee  on  Foreign  Affairs 
on  May  1,  1950. 

our  agricultural  exports  were  valued  at  over  31^ 
billion  dollars.  We  sent  abroad  about  40  percent 
of  our  wheat,  32  percent  each  of  our  cotton  and 
our  rice,  22  percent  of  our  tobacco,  almost  30  per- 
cent of  our  raisins  and  over  40  percent  of  our 
prunes,  30  percent  of  our  peanuts,  and  25  percent 
of  our  hops — to  mention  some  of  the  more  strik- 
ing items. 

The  level  of  our  agricultural  exports  during 
recent  years  has  been  higher  than  normal  because 
of  emergency  and  postwar  requirements.  Much 
of  this  was  implemented  by  the  financial  assist- 

iuly  JO,   7950 


ance  this  country  has  been  giving  the  purchaser 
countries.  With  the  progressive  restoration  of 
agricultural  production  abroad,  we  can  expect  an 
over-all  shrinkage  of  our  agricultural  exports  from 
the  high  level  reached  during  the  emergency 

This  return  of  our  farm  exports  toward  more 
normal  levels  will  require  adjustments  in  our  agri- 
cultural production.  Should  our  agricultural  ex- 
l^orts  drop  to  the  levels  which  prevailed  in  the 
late  thirties,  serious  production  curtailments 
could  not  be  avoided.  On  the  other  hand,  to  the 
extent  we  succeed  in  maintaining  our  agricultural 
exports  at  their  present  levels,  the  domestic  ad- 
justment i^roblem  will  be  reduced. 

The  history  of  the  1930's  indicates  that  we  cannot 
hope  to  maintain  a  high  level  of  agricultural  ex- 
ports unless  conditions  favorable  to  multilateral 
nondiscriminatory  trade  are  restored  in  the  portion 
of  the  world  economy  with  which  we  carry  on  the 
bulk  of  our  trade.  You  will  recall  that  the  trade 
restrictions  and  exchange  controls  employed  by 
foreign  countries  in  the  thirties  hurt  our  agi-icul- 
tural  exports  considerably  more  than  they  did  our 
industrial  exports.  This  was  because  foreign 
countries  turn  to  alternative  sources  of  supply, 
such  as  stinndation  of  domestic  production,  for 
many  of  the  agricultural  products  normally  pur- 
chased from  the  United  States  more  readily  than 
they  did  for  the  products  of  our  industry  which 
they  found  more  difficult  to  purchase  elsewhere. 

IJnder  the  impact  of  the  war  and  postwar  emer- 
gency, foreign  governments  have  greatly  increased 
their  intervention  in  trade  by  such  means  as  eni- 
bargoes  and  quotas,  exchange  controls  and  arti- 
ficial exchange  rates,  state-trading  monopolies, 
and  bilateral  or  regional  trade  and  payment  ar- 
rangements. Recourse  to  these  restrictive  and 
discriminatory  measures  has  sometimes  been  justi- 
fied by  the  difficidties  encountered  by  many  foreign 
countries  in  balancing  their  trade  and  payments 
with  the  United  States  and  other  so-called  hard- 
currency  countries.  EGA  assistance  is  helping 
many  of  those  countries  overcome  their  acute  finan- 
cial difficulties.  But  if  the  world  is  to  obtain  last- 
ing benefits  from  the  rebuilding  of  the  war-torn 
economies,  it  is  necessary  that  those  abnorrnal  trade 
restrictions  and  discriminations  be  discontinued  as 
I'apidly  as  improvements  in  international  financial 
and  trade  conditions  permit. 

To  assure  international  cooperative  progress  to- 
ward this  objective,  and  thus  to  provide  for  a 
revival  of  multilateral  nondiscriminatory  trade,  is 
the  principal  objective  of  the  Ito  charter. 

EHorts  on  Behalf  of  World  Trade 

Thus — as  has  been  pointed  out  by  those  who 
have  already  testified  before  this  Committee — it 
would  supplement  our  efforts  through  EGA.  It 
would  also  supplement  o>ir  trade  agreement  pro- 
gram and  the  international  monetary  and  finan- 
cial arrangements  of  Bretton  Woods.     Further- 


more,  it  would  help  achieve  the  United  Nations 
Food  and  Agi'iculture  Organization's  objectives 
of  improved  nutrition  and  standards  of  rural  liv- 
ing throughout  the  world.  Signatory  countries 
to  this  charter  would  undertake  to  work  together 
to  avoid  the  type  of  situation  we  had  in  the  thirties. 
In  addition  to  the  interest  of  American  farmers 
in  the  charter  because  of  the  need  to  export  farm 
products,  they  have  an  overwhelming  interest  in 
the  maintenance  of  other  portions  of  the  United 
States  economy  in  an  active  healthy  condition. 
It  is  my  belief  that  the  cooperation  of  nations  in 
the  establishment  of  the  International  Trade 
Organization  provided  for  in  the  charter  being 
considered  by  this  Committee  will  advance  those 
interests.  Other  witnesses  will  elaborate  on  these 
aspects  of  the  charter.  I  would  like  now  to  turn 
to  the  specific  provisions  of  the  charter  as  they 
relate  to  matters  of  most  direct  interest  to  Ameri- 
can farmers. 

The  charter  approach  is  a  realistic  approach. 
The  Habana  conference  and  the  other  interna- 
tional meetings  in  which  this  charter  was  drafted 
did  not  stop  with  the  establishment  of  broad 
principles.  They  studied  specific  difficulties  likely 
to  be  encountered,  and  they  wrote  into  the  charter 
provisions  allowing  for  sufficient  flexibility  to  deal 
with  the  realities  of  the  trade  situation. 

For  example,  there  is  a  "general  escape  clause" 
similar  to  that  included  in  the  more  recent  trade 
agreements.  It  provides,  in  essence,  that  any 
countiy  may  suspend  obligations  undertaken 
under  "the  charter  or  may  withdraw  tariff  conces- 
sions if,  as  a  result  of  unforeseen  developments, 
increased  imports  of  a  product  cause  or  threaten 
serious  injury  to  domestic  producers. 

As  concerns  import  restrictions  on  agricultural 
products,  the  charter  develops  what  I  believe  to  be 
a  fair  basis  for  meeting  the  very  difficult  problem 
of  imports  of  products  on  which  we  have  domestic 
support  programs.  As  you  know,  we  have  tradi- 
tionally imported  substantial  quantities  of  agri- 
cultural pi'oducts  of  kinds  similar  to,  or  supple- 
mental to,  those  we  produce  in  this  country.  We 
have  a  serious  basic  problem  because  imports  of 
these  commodities,  many  of  them  interrupted  dur- 
ing the  war,  are  resuming  just  at  the  time  when  we 
are  struggling  hardest  with  the  problem  of  adjust- 
ing our  agriculture  to  a  peacetime  basis  through 
the  support  of  the  domestic  market. 

It  is  obvious  that  we  cannot  permit  imported 
products  to  take  advantage  of  a  market  support 
operation  designed  to  help  United  States  pro- 
ducers. On  the  other  hand,  it  would  be  unwise  for 
us  to  take  the  other  extreme  and  completely  pro- 
hibit imports  of  a  product  traditionally  imported 
into  the  United  States.  The  one  action  would  be 
unfair  to  us.  The  other  would  be  unfair  to  foreign 
countries.  Moreover,  it  would  lead  to  a  type  of 
economic  warfare  which,  in  the  long  run,  would 
harm  the  export  market  for  United  States  agricul- 
tural products. 

Department  of  State  Bulletin 

The  churtcr  deals  with  fhis  problem  by  pennit- 
ting  restriction  upon  imports  of  an  agricnltnral 
conunodity  beino-  supported  under  any  domestic 
program  in  the  same  proportion  as  the  domestic 
produceis  benefiting  trom  that  program  accept 
restrictions  on  the  production  or  marketing  of 
that  con)niodity. 

This  is  not  a  simple  rule  to  apply,  but  I  am 
sure  that  the  Committee  will  recognize  it  as  a 
fair  principle  on  which  to  base  any  continuing 
import  restriction.  Moreover,  it  does  not  prevent 
the  mutually  beneficial  development  of  trade  be- 
tween countries  that  sign  the  charter. 

In  addition  to  this  principle  regarding  continu- 
ing import  restrictions,  the  charter  permits  tem- 
porary use  of  restrictions  on  imports  of  agricul- 
tural products  in  connection  with  operations  to 
remove  temporary  surpluses. 

Subsidy  Provisions  and  Commodity  Studies 

I  would  next  like  to  mention  the  relationship 
between  the  subsidy  provisions  of  the  charter  and 
our  agricultural  programs.  One  objective  of  our 
farm  legislation  is  to  maintain  a  fair  relationship 
between  agricultural  and  nonagricultural  incomes. 
Sometimes  our  price-support  program  results  in 
holding  domestic  prices  up  when  world  prices  are 
falling.  This  tends  to  price  us  out  of  our  foreign 
market.  Export  subsidies  can  be  used  to  offset 
such  differentials.  The  charter  permits  this  in 
special  cases,  even  though  it  bans  export  subsi- 
dies in  general.  Again,  however,  it  imposes  a 
limitation  that,  I  believe,  we  must  recognize  as 
fair.  It  requires  that  a  country  using  export  sub- 
sidies does  not  use  them  to  push  its  export  quanti- 
ties beyond  an  equitable  share  of  world  trade  in 
the  commodity  involved.  This  limitation  aims 
to  prevent  international  economic  warfare  which 
would  be  harmful  to  all  producers  of  the  com- 
modity anywhere  in  the  world. 

The  charter  recognizes,  however,  that  limita- 
tions on  subsidized  exports  alone  cannot  solve  the 
problems  arising  in  the  world  economy  as  a  re- 
sult of  the  accumulation  of  burdensome  surpluses 
of  a  primary  product.  Therefore,  there  is  a  spe- 
cial chapter — chapter  VI — on  international  com- 
modity agi'eements.  It  provides  machinery  for 
intergovernmental  study  of  world  connnodity 
problems  and  for  cooperation  among  the  inter- 
ested governments  in  efforts  to  achieve  a  solution 
of  those  problems  in  a  manner  fair  to  both  pro- 
ducers and  consumers.  International  bodies 
studying  commodity  situations  are  already  in  ex- 
istence in  the  instances  of  such  important  products 
as  wheat,  cotton,  and  sugar. 

We  already  have  an  international  agi-eement  for 
wheat  approved  by  the  Congress  last  year.  That 
agreement  gives  a  specific  example  of  one  way  in 
which  an  international  commodity  problem  can 
be  handled  under  the  charter  chapter  on  interna- 
tional commodity  agreements.    I  should  add  that 

the  extended  international  discussion  that  led  to 
the  initialing  of  the  commodity  agreement  chap- 
ter of  tlie  charter  by  representatives  of  513  coun- 
tries was  an  important  preparatory  process  that 
helped  make  possible  the  final  negotiation  of  the 
Wheat  Agreement. 

I  might  say  just  a  word  about  the  Wheat  Agree- 
ment. American  wheat  growers  responded  whole- 
heartedly to  the  war  and  jDostwar  appeal  to  pro- 
duce in  abundance  to  feed  a  hungry  world,  and 
they  have  developed  wheat  production  so  that  it 
can  be  maintained  substantially  above  prewar 
levels.  Thus  they  have  a  real  and  legitimate  in- 
terest in  their  share  in  foreign  markets.  During 
the  life  of  the  Wheat  Agreement,  they  will  have  a 
large  guaranteed  export  market  in  the  participat- 
ing importing  countries. 

The  producers  of  other  export  staples,  as  for 
example  cotton,  who  also  may  in  the  future  be 
faced  with  the  threat  of  an  accumulation  of  bur- 
densome surpkises,  are  interested  in  the  Wheat 
Agreement  because  they  may  want  to  use  a  simi- 
lar technique  in  future  years. 

The  over-all  importance  of  the  Wlieat  Agree- 
ment, and  of  other  commodity  agreements  that 
might  be  concluded  in  the  future,  from  the  view- 
point of  international  economic  relations,  cannot 
be  underestimated.  There  is  a  basic  interdepend- 
ence among  the  leading  trading  countries  of  the 
world,  and  this  is  particularly  important  in  the 
field  of  agriculture.  You  cannot  satisfactorily 
solve  the  problem  of  wheat  in  terms  of  United 
States  pi'oduction  for  the  United  States  market, 
any  more  than  the  British  can  solve  it  in  terms 
of  production  and  consumption  in  the  Uiiited 
Kingdom  alone.  Unless  all  of  the  governments 
principally  concerned  get  together  to  discuss  the 
pi'oblems  that  arise  out  of  their  common  interest  in 
wheat,  all  will  suffer  more  than  need  be.  The  same 
is  true  for  many  other  agricultural  commodities. 
Only  by  friendly  cooperation  among  the  main  con- 
suming and  producing  countries  will  we  be  able 
to  assure  a  measure  of  stability  in  the  world's  com- 
modity markets. 

There  is  one  additional  point  I  should  stress  in 
respect  to  the  commodity  agreement  chapter  of  the 
charter.  It  does  not  permit  the  indiscriminate  use 
of  intergovernmental  agreements  to  control  trade. 
It  limits  recourse  to  control  agreements  to  cases 
of  real  difficulty.  In  fact,  the  charter  permits  such 
agreements  only  when  there  is  or  threatens  to  be  a 
burdensome  surplus  of  a  primary  commodity 
which  cannot  be  corrected  by  normal  market  forces 
in  time  to  pi'event  hardship  to  a  large  number  of 
small  producers. 

I  would  like,  in  conclusion,  to  stress  that  leading 
farm  organizations  have  expressed  support  for  the 
principles  of  the  Ito  charter. 

American  farmers  recognize  the  need  to  supple- 
ment international  political  cooperation  by  eco- 
nomic cooperation. 

I  urge  favorable  action  on  this  charter. 

July   10,    1950 


The  Need  for  an  International  Trade  Organization 

Statement  hy  Charles  Sawyer 
Secretary  of  Commerce  ^ 

The  Department  of  Commerce  has  a  vital  in- 
terest in  the  international  trade  of  the  United 
States.  It  has  this  interest  because  it  is  charged 
with  serving  the  American  business  community 
and  aiding  in  the  maintenance  of  a  strong  domes- 
tic economy  in  addition  to  the  part  it  plays  in  the 
development  of  our  foreign  economic  policy. 
Bearing  these  responsibilities  in  mind,  I  want  to 
make  clear  at  the  outset  that,  in  our  judgment, 
adherence  to  the  charter  will  have  beneficial  re- 
sults for  our  country. 

Over  the  past  few  weeks,  you  have  heard  the 
testimony  of  many  witnesses.  Most  of  these  have 
spoken  in  favor  of  joining  the  Ixo.  Since  you 
have  heard  both  sides  of  the  question,  I  shall  not 
impose  on  you  a  repetition  either  of  the  arguments 
or  the  charter's  details.  What  I  should  like  to 
do  is  to  comment  on  the  attitude  of  business  toward 
the  Ito. 

I  am  aM'are  of  the  criticisms  that  have  been 
made  by  a  number  of  business  organizations. 
Nevertheless,  while  these  groups  have  differed  re- 
garding details  in  the  chaiter,  I  believe  that  they, 
as  well  as  those  which  have  spoken  in  favor,  agree 
with  the  basic  principles  of  the  Ito.  All  are  con- 
vinced that  something  is  wrong  in  world  trade 
today,  and  all  are  of  like  mind  that  something 
needs  to  be  done  about  it. 

Criticisms  of  Charter 

Criticisms  of  the  charter  have  been  many  and 
varied.  On  the  one  hand,  the  charter  has  been 
called  an  impractical  idealistic  document;  on  the 
other  hand,  it  is  criticized  because  of  its  conces- 
sions to  the  realities  of  the  world  in  which  we  are 
now  living.  While  some  have  said  that  the  char- 
ter is  too  technical  and  complicated,  others  feel 
that  it  is  full  of  platitudes  and  generalizations. 
The  most  frequent  criticisms,  however,  have  been 

'  Submitted  to  the  House  Foreign  Affairs  Committee 
on  May  11, 1950. 

leveled  at  the  so-called  "exceptions"  to  the  charter 
and  the  fact  that  it  might  cause  an  increase  in 
imports  which  these  people  feel  would  be  bad  for 
the  country. 

I  do  not  believe  that  these  criticisms  should  be 
ignored.  They  have  been  made  in  the  main  by 
sincere  and  conscientious  individuals  and  organi- 
zations which  have  studied  the  charter.  I  should, 
therefore,  like  to  devote  a  few  lines  to  them.  The 
avenues  of  trade  are  still  congested  with  restric- 
tions and  discriminatory  arrangements  instituted 
to  deal  with  abnormal  economic  conditions  with 
which  you  are  all  familiar.  Our  businessmen  com- 
plain about  them  every  day.  The  point  is  that 
the  charter  did  not  create  those  conditions ;  yet  it 
cannot  fail  to  recognize  their  existence.  In  other 
words,  many  of  the  criticisms  which  have  been 
leveled  at  the  charter  should  really  be  directed 
against  world  conditions.  If  the  charter  did  not 
recognize  the  state  of  affairs  today  it  would  not 
be  worth  having  because  it  would  be  based  on  illu- 
sions and  wishes — not  on  realities. 

The  establishment  of  the  Ito,  however,  will  give 
us  an  opportunity  to  work  continuously  at  the 
ailments  which  now  afflict  international  trade. 
For  adequate  diagnosis  and  treatment  we  need  a 
continuous  appraisal.  Nations  must  consult  with 
one  another  to  find  out  what  is  wrong  and  reach 
agreement  on  what  must  be  done. 

I  do  not  believe  that  the  charter  will  usher  in 
a  new  era;  neither  am  I  so  cynical  as  to  believe 
that  it  is  worthless.  It  is  a  step  forward;  it  is 
more  than  we  have  now.  It  ]>rovides  for  the  elim- 
ination of  many  nuisances  and  unnecessary  trade 
barriers  that  plague  the  trader  today.  I  have  in 
mind,  for  example,  the  field  of  customs  formali- 
ties— often  referred  to  as  "invisible  tariffs."  What 
the  charter  seeks  to  do  in  tliis,  as  in  other  fields, 
is  to  establish  agreed  rules  or  principles  of  rea- 
sonableness or  fairness  in  the  administration  of 
customs  and  related  regulations  and  thus  to  elim- 
inate or  cut  down  some  of  the  foi-malities  and 
complexities  that  have  become  a  part  of  customs 
administration  all  over  the  world. 


Department  of  State   BuUelin 

I  should  like  to  direct  your  attention  to  two 
points  with  which  critics  of  the  Ito  have  been 
principally  concerned.  One  of  these  relates  to 
the  so-called  "exceptions."  The  critics  feel  that 
the  charter  would  be  unfair  to  the  United  States 
because  our  trade  would  be  carried  on  without 
exceptions  while  the  trade  of  other  countries 
would  be  carried  on  under  the  exceptions.  This 
arjiument  does  not  hold  water.  The  charter  binds 
all  of  the  member  nations  to  live  up  to  its  terms. 
Some  of  these  terms  are  unqualified.  Those 
which  relate  to  customs  procedures,  internal  taxes 
and  regulations,  and  restrictive  trade  practices 
are  examples. 

It  is  true  that  exceptions  ai'e  written  into  the 
charter  to  provide  for  the  unusual  conditions  to 
which  I  have  already  referred.  It  should  be  kept 
in  mind,  however,  that  some  were  put  in  at  our 
request  for  our  benefit.  Some  benefit  no  other 
country,  an  example  being  the  preference  excep- 
tion regarding  trade  between  the  United  States 
and  the  Philippines  and  Cuba.  Other  exceptions 
we  asked  for  and  got  were  those  relating  to  secu- 
rity considerations,  import  quotas  on  certain  agri- 
cultural products,  and  the  use  of  the  "escape 
clause"  in  connection  with  tariff  concessions. 

Need  for  Compromise 

Now  in  order  to  get  these  exceptions,  and  to  get 
otlier  countries  to  agree  to  general  principles 
which  both  the  proponents  and  opponents  of  the 
charter  have  agreed  are  desirable,  we  had  to  com- 
promise on  some  issues.  After  all,  we  were  deal- 
ing with  a  large  group  of  sovereign  independent 
nations,  many  of  whom  have  varied  backgrounds, 
traditions,  and  customs.  We  have  always  com- 
jiromised  in  order  to  reach  mutually  satisfactory 
conclusions  in  dealing  with  other  nations.  If  we 
were  unwilling  to  give  and  take  we  would  make  no 

Some  criticism  of  the  charter  has  also  come  from 
those  who  fear  the  effects  of  greater  imports  into 
the  United  States.  This  is  a  problem  in  which 
I  am  intensely  interested.  The  charter,  as  you 
know,  provides  certain  rules  for  trade.  It  does 
not  in  itself  cause  trade  to  flow.  Thus,  it  will  not 
by  itself  create  more  or  less  imports.  And  it  does 
not  require  us  to  take  any  action  with  respect  to 
tariffs  to  which  we  are  not  already  committed 
under  the  Trade  Agreements  Program. 

With  regard  to  the  question  of  imports,  I  should 
like  to  point  out  that  the  great  bulk  of  the  business 
community  not  only  does  not  fear  imports  but  is 
taking  active  steps  to  encourage  them.  Among 
the  national  organizations  which  have  taken  this 
position  are  such  diverse  groups  as  the  National 
Association  of  Manufacturers,  the  Chamber  of 
Commerce  of  the  United  States,  the  United  States 
Council  of  the  International  Chamber  of  Com- 
merce, the  National  Foreign  Trade  Council,  the 
Congress  of  Industrial  Organizations,  the  Ameri- 

can Farm  Bureau  Federation,  and  a  host  of  other 
organizations  well-known  to  you.  In  an  expand- 
ing economy,  more  goods  will  be  exchanged,  not 
less,  and  goods  must  flow  into  the  United  States 
as  well  as  out  if  we  are  eventually  to  avoid  subsi- 
dizing our  foreign  trade  with  dollar  loans  and 

I  should  also  like  to  call  your  attention  to  the 
provisions  dealing  with  so-called  restrictive  busi- 
ness practices.  Experience  has  shown  that  cer- 
tain activities  of  private  international  cartels, 
such  as  the  allocation  of  trade  territories  and  in- 
dustrial fields,  limitation  of  production,  and  price 
fixing,  can  restrict  the  flow  of  trade  and  limit 
competition  just  as  effectively  as  any  government- 
imposed  tariff  or  quota.  For  a  long  time,  it  has 
been  our  general  policy  in  this  country  to  elim- 
inate such  practices,  but  very  few  other  countries 
have  heretofore  been  concerned  with  this  subject 
to  any  appreciable  extent.  Under  the  Ito  char- 
ter, however,  each  member  nation  would  be  re- 
quired to  take  steps  to  assure  that  enterprises  in 
its  jurisdiction  do  not  engage  in  practices  which 
restrain  international  trade  and  interfere  with  the 
realization  of  any  of  the  objectives  of  the  charter. 

In  the  light  of  the  hard  facts  and  realities  of 
the  present  world,  I  believe  that  the  Ito  charter 
is  in  the  interest  of  the  United  States — and  I  want 
to  emphasize  that  by  participating  in  the  Ito, 
we  do  not  prejudice  our  ability  to  seek  improve- 
ments as  soon  as  they  can  be  achieved.  I  believe 
we  are  right  in  hoping  for  a  day  when  world 
trade  will  conform  more  nearly  to  the  conditions 
of  business  practice  within  the  borders  of  this 
country.  We  should,  therefore,  in  my  judgment, 
approve  an  agreement  that  advances  us  toward 
our  objective  even  if  it  is  not  entii'ely  perfect. 

Whatever  the  shortcomings  of  the  Ito  charter, 
I  am  convinced  that  our  failure  to  ratify  would  be 
a  mistake.  The  alternative  is  likely  to  be  a  period 
of  more  restrictive  and  conflicting  systems  of  for- 
eign trade  control  on  the  part  of  many  countries. 
We  would  probably  see  greater  efforts  at  national 
self-sufficiency,  and  wider  governmental  interven- 
tion in  commerce.  Controls  which  become  no 
longer  justifiable  on  economic  grounds  might  be 
continued  for  bureaucratic  or  political  reasons, 
and  our  only  recourse  would  be  retaliation  which 
would  be  bound  to  have  depressing  effects  upon  the 
economic  progress  and  prosperity  of  the  United 

Stated  simply,  I  believe  the  charter  should  be 
approved  because  its  fundamental  premises  are 
good  and  agreed  to  by  most  businessmen ;  because 
most  of  its  provisions  are  constructive;  and  be- 
cause there  is  nothing  in  it  which  will  harm  the 
position  of  the  United  States  or  its  businessmen. 
The  common-sense  approach  to  this  problem 
would  seem  to  be  to  approve  this  charter  and  then 
to  work  with  other  member  countries  through 
the  International  Trade  Organization  to  accom- 
plish our  purposes. 

July   10,    1950 


Relaxing  Restrictions  on  Foreign  Investment  in  Germany 



[Released  to  the  press  June  15] 

At  its  meeting  in  Berlin  today,  the  Council  of 
the  Allied  High  Commission  approved  the  detailed 
procedure  prepared  by  its  financial  advisers  for 
the  first  stage  in  the  i^rogressive  relaxation  of  the 
present  i-estrictions  on  foreign  investment  in 

The  formulation  of  this  procedure,  which  is  to 
be  operated  on  a  licensing  system  under  the  direc- 
tion of  the  Allied  Bank  Commission  and  based  on 
Military  Government  Laws  No.  52  and  No.  53, 
follows  the  approval  in  principle  by  the  Council, 
on  May  31,  1950,  to  the  reopening  of  Germany  to 
foreign  investment.  The  new  opportunities, 
which  are  to  be  granted  to  foreign  owners  of  prop- 
erty and  funds  in  Germany  and  to  foreigners  wish- 
ing to  bring  new  capital  into  Germany,  were  the 
subject  of  discussions  with  the  Federal  Finance 
Minister  on  June  G,  1950,  and  with  the  representa- 
tives of  the  Benelux  Governments  on  June  9,  1950. 
The  decision  of  the  High  Commission  has  eifect 
in  the  area  of  the  Federal  Eepublic  of  Germany 
and  in  the  American,  British,  and  French  sectore 
of  Berlin. 

In  deciding  on  the  new  procedure  which,  it  is 
hoped,  will  contribute  to  the  economic  recovery  of 
the  Federal  Republic,  the  High  Commission  has 
had  to  take  into  account  a  ninnber  of  considera- 
tions of  which  the  most  important  are  the  need 
to  safeguard  Germany's  foreign-exchange  posi- 
tion, to  prevent  undue  concentration  of  foreign 
capital  in  German  industry,  and  to  provide  equal- 
ity of  opportunity  and  treatment  (for  foreign  in- 
vestment made  from  blocked  funds  now  held  in 
Germany  and  new  funds  from  abroad)  as  between 
existing  foreign  owners  of  property,  prewar  cred- 
itors, and  new  foreign  investors  and  German 

Further  measures  of  liberalization  and  relaxa- 
tion will  be  introduced  in  the  light  of  the  experi- 
ence gained  in  the  operation  of  the  present  new 
procedure.  However,  it  is  not  foreseen  that  con- 
vertibility in  foreign  exchange  of  capital  or  in- 

come from  old  or  new  investments  will  be  per- 

Pi'incipal  features  of  the  scheme  are: 

(1)  Cajiital  equipment,  raw  materials  and  semi- 
finished goods,  and  engineering  and  other  techni- 
cal services  may  be  brought  into  the  Federal  Re- 
l^ublic  for  investment  purposes  under  special 
license ; 

(2)  Deutchemarks  may  be  acquired  from  the 
Bank  Deutscher  Laender  at  the  current  rate  of 
exchange  against  acceptable  foreign  currencies 
and  may  be  used  in  Germany  under  the  same  con- 
ditions as  govern  the  use  of  existing  foreign 
balances ; 

(3)  Foreign  owners  of  claims,  expressed  in  for- 
eign currencies  against  German  persons,  corpora- 
tions, or  German  public  bodies  will  be  permitted 
by  special  license  to  enter  into  voluntary  agree- 
ments with  the  debtors  for  repayment  in  deutsche- 
marks ; 

(4)  Foreign-owned  real  estate  or  other  non- 
monetary property  may  be  sold  in  Germany  or 
transferred  to  another  foreign  owner  for  foreign 
exchange  consideration  by  special  license ; 

(5)  Foreign  owners  of  deutschemark  bank  bal- 
ances (including  deutschemarks  acquired  by  the 
above  methods)  and  foreign-owned  or  -controlled 
German  corporations  will  be  allowed  by  general 
license  to  invest  in  real  estate,  in  securities  issued 
b}'  public  bodies,  and  in  pul)licly-dealt-in  securi- 
ties and,  by  special  license,  will  be  allowed  to  ac- 
quire investments  in  private  business  enterprises 
and  loans ; 

(6)  The  permitted  daily  drawings  from  foreign- 
owned  deutschemark  balances  for  travel  expenses 
in  Germany  will  be  increased  to  DM  75  per  person 
with  a  maximum  of  DM  200  per  day  per  family. 
General  licenses  imder  Military  Government  Laws 
Nos.  52  and  53  to  give  legal  effect  to  the  above 
arrangements  will  be  issued  by  Bank  Deutscher 
Laender  in  the  near  future. 

In  reaching  its  decision  to  relax  restrictions  on 
foreign  investment  in  Germany,  the  Allied  High 
Commission  lias  been  influenced  by  the  urgent  need 
for  new  capital  investment  in  Germany  to  insure 


Department  of  State  Bulletin 

the  continued  economic  recovery  of  the  Federal 
Republic.  It  recognizes  that  tlie  foreign  investor 
has  a  part  to  phiy  in  providing  tlie  necessary 
cajiital  for  this  purpose. 

In  order  to  attract  new  foreign  capital  to  Ger- 
many and  to  encourage  productive  use  of  existing 
foreign  funds  in  Germany,  the  High  Commission 
ap]ireciates  tliat  the  regulations  governing  the  em- 
l^loyment  of  foreign  funds  must  be  as  liberal  as 
possible  and  that  exchange-control  restrictions 
must  be  kept  to  a  minimum.  At  the  same  time, 
the  overriding  necessity  of  safeguarding  the  sta- 
bility of  tlie  currency  and  of  maintaining  foreign- 
exchange  accruals,  upon  which  the  general  stand- 
ard of  living  and  the  level  of  imports  so  largely 
depend,  must  be  borne  in  mind.  It  is  for  these 
reasons  that  it  is  possible  to  proceed  only  by  pro- 
gressive stages  in  the  removal  of  the  restrictions 
on  existing  foreign  owners  of  assets  and  on  new 
investors  and  in  restoring  the  normal  contractual 
relationship  between  creditors  and  debtors. 

In  opening  the  way  for  an  increase  in  foreign 
investment  in  Gei-many,  certain  additional  safe- 
guards are  essential.  These  have  been  provided 
for  in  the  detailed  scheme.  The  development  of 
new  foreign  investment  is  to  be  kept  under  con- 
stant survey  to  prevent  any  undue  concentration 
of  economic  power.  Finally,  the  same  opportu- 
nities as  are  afforded  to  new  foreign  investors  are 
made  available  to  old  creditors  and  existing  prop- 
erty owners. 

Inquiries  in  connection  with  this  policy  and 
applications  for  special  licenses  should  be  ad- 
dressed to  the  Bank  Deutscher  Laender  at  Frank- 
fort, Germany,  or  to  the  appropriate  Land  Cen- 
tral Banks  in  the  Federal  Republic  of  Gennany. 


Tlie  Department  of  State  on  June  16  released  to  the  press 
the  details  of  the  new  policy  concertmiri  foreign  invest- 
ments in  the  Federal  Republic  of  Qermany  and,  the  Ameri- 
can. British,  and  French  sectors  of  Berlin.  This  policy 
was  apprnrid  by  the  Allied  High  Commission  at  its  meet- 
ing in  Berlin  on  June  15,  19.50,  and  was  announced  in  sum- 
mary in  the  Department's  press  release  638  of  June  16, 
1950.     The  details  of  the  new  regulations  are  as  follows: 

A.  Subject  to  the  provisions  of  paragrapli  B.  below : 

(1)  Foreign  owners  of  DM  balances  may  utilize  and 
dispose  of  .such  balances,  including  DM  proceeds  from 
settlements  referred  to  in  paragraph  (6)  below,  as  follows : 

(i)  disbursements  which  are  now  or  which  may 
hereafter  be  permitted  by  general  licenses  issued  pursuant 
to  Military  Government  Laws  Nos.  52  and  53.  General 
licenses  will  l)e  issued  which  will  enable  foreign  owners 
to  utilize  and  dispose  of  their  DM  balances  subject  to  the 
same  limitations  as  apply  to  German  owners  but  only  in 
so  far  as  foreign  exchange  control  objectives  of  the  Federal 
Republic  are  not  contravened.  In  particular,  the  existing 
general  license  for  travel  expense  will  be  amended  to  per- 
mit the  account  owner  to  withdraw  up  to  DM  75  per  day 
per  person  to  cover  the  travel  expenses  in  Germany  for 

himself  and  members  of  his  family  provided  the  total  of 
such  withdrawals  does  not  exceed  DM  200  per  day. 

(ii)  investments  in  real  estate  and  in  securities 
issued  by  public  bodies  and  their  agencies  and  securities 
publicly  dealt  in  to  be  permitted  in  accordance  with  a 
general  license  to  be  issued  pursuant  to  M.  G.  Laws  Nos. 
52  and  53  which  will  provide  tliat  re.'il  estate  and  se- 
curities so  acquired  shall  be  subject  to  the  provisions  of 
such  laws. 

(iii)  investments  in  private  business  enterprises 
and  loans  will  be  permitted  in  accordance  with  special 
licenses  to  be  issued  on  a  case  bv  case  basis  pursuant  to 
M.  G.  Laws  Nos.  52  and  53. 

(2)  Foreign  owners  of  real  or  other  property  in  the 
Federal  Republic  of  a  nimmonetary  nature  will  be  per- 
mitted in  accordance  with  special  licenses  to  be  issued  on 
a  case  by  case  basis  pursuant  to  M.  G.  Laws  Nos.  52  and  53 : 

(i)  to  dispose  of  such  property  subject  to  the  same 
limitations  which  apply  to  German  owners  of  similar 
property  on  condition  that  any  DM  or  other  proceeds 
accruing  therefrom  shall  be  paid  into  a  blocked  account 
in  the  name  of  the  foreign  owner,  which  may  be  utilized 
in  the  same  manner  as  outlined  in  paragraph  (1)  above; 

(ii)  to  transfer  title  to  any  such  property  to  other 
foreigners  for  foreign-exchange  considerations  provided 
that  such  transfers  are  not  for  the  purpose  of  avoiding 
foreign  exchange  control  objectives  of  the  Federal  Repub- 
lic and  that  such  property  was  not  acquired  after  the  date 
of  the  lifting  of  the  investment  moratorium. 

(3)  Foreign-owned  or  -controlled  business  enter- 
prises organized  under  German  law  and  operating  in  the 
Federal  Republic  will  be  freed  by  way  of  a  general  license 
from  any  restrictions  under  51.  G.  Laws  Nos.  52  and  53 
which  do  not  affect  the  operations  of  German  enterprises 
except  for  the  control  of  investments  to  the  extent  set 
forth  in  paragraphs  1   (ii)  and  1   (iii)   above. 

(4)  Foreign  persons  will  be  permitted  in  accordance 
with  special  licenses  to  be  issued  pursuant  to  M.  G.  Laws 
Nos.  .52  and  53  to  bring  into  the  Federal  Repul)lic  capital 
equipment,  raw  materials  and  semifinished  goods,  engi- 
neering and  other  technical  services  for  use  in  the  Federal 
Republic  subject  to  the  same  regulations  as  apply  to 
German-owned  properties  on  condition  that  any  DM  or 
other  proceeds  accruing  therefrom  shall  be  jiaid  into  a 
blocked  account  in  the  name  of  the  foreign  owner,  which 
may  be  utilized  in  the  same  manner  as  outlined  in  para- 
graph (1)  above. 

(5)  (i)  The  Bank  Deutscher  Laender  will  be  author- 
ized, under  the  supervision  of  the  Allied  High  Commission 
or  its  designated  agency,  to  sell  deutschemarks,  at  the 
current  rate  of  exchange,  against  acceptable  foreign  cur- 
rencies including  those  placed  at  the  disposal  of  the  Bank 

Information  on  Doing  Business 
With  Germany  and  Austria 

The  Economic  Cooperation  Administration  an- 
nounced on  June  12  that  materials  on  Doing 
Business  With  Austria  and  Doing  Business  With 
Germany  are  now  available  from  its  OflBce  of  Small 
Business  at  Washington. 

These  materials,  prepared  by  the  OflBce  of  Inter- 
national Trade,  Department  of  Commerce,  con- 
tained detailed  information  of  interest  to  American 
businessmen  engaged  in,  or  contemplating,  trade 
witli  German  and  Austrian  firms. 

In  addition  to  describing  general  trade  possibil- 
ities with  these  ECA  countries,  the  materials 
discuss  exchange  controls  and  capital  movements, 
exchange  rates,  and  trade  procedures  and  regu- 

July   10,   1950 


Deutscher  Laender  under  existing  payment  agreements  or 
pursuant  to  such  subsequent  payment  arrangements  as 
may  be  set  up.  Foreign  excliange  derived  under  tliis  pro- 
vision shall  be  held  by  the  Bank  Deutscher  Laender  sub- 
ject to  the  same  controls  as  other  foreign  exchange 

(ii)  DM  balances  created  or  other  assets  acquired 
as  a  result  of  the  foregoing,  including  income,  shall  be 
held  subject  to  the  provisions  of  M.  G.  Lavps  Nos.  52  and 
53  and  may  be  utilized  in  the  same  manner  as  outlined 
in  paragraph  (1)  above. 

(6)  (i)  Foreign  owners  of  securities,  claims  or  other 
obligations  expressed  in  foreign  currencies  which  repre- 
sent debts  of  private  persons,  firms  or  coiiiorations  in  the 
Federal  Republic  will  be  permitted  in  accordance  with 
special  to  be  issued  pursuant  to  M.  G.  Laws  Nos. 
52,  53  and  63  to  enter  into  voluntary  agreements  with  the 
debtors  for  the  settlement  of  such  debts  in  DM  provided 
that : 

(a)  Such  securities  were  issued  or  the  claims  or 
other  obligations  arose  prior  to  September  1,  1939,  and 
were,  except  in  the  case  of  bonds,  held  by  the  present  owner 
on  the  date  the  lifting  of  the  investment  moratorium  is 

(b)  Any  DM  received  by  the  foreign  owners  as 
a  result  of  any  such  settlements  shall  be  paid  into  a 
blocked  account  in  the  name  of  the  foreign  owner,  which 
may  be  utilized  in  the  same  manner  as  outlined  in  para- 
graph (1)  above. 

( c )  The  security,  claim  or  other  obligation,  if  sub- 
ject to  the  provisions  of  the  Law  for  the  Settlement  of 
Matters  Concerning  Foreign  Currency  Securities  (Vali- 
dation Law)  when  enacted,  shall  have  been  duly  validated 
pursuant  to  the  provisions  of  such  Law. 

(d)  It  is  established  that  all  other  foreign  credi- 
tors of  the  German  debtor  involved  have  been  given  at  least 
60  days  notice  of  the  proposed  .settlement  by  publication 
and  by  registered  letter  where  possible;  such  notice  to 
inform  creditors  that  any  ob.iections  to  the  proiX)sed  set- 
tlement must  be  registered  with  the  designated  licensing 
authority  within  the  stipulated  time.  The  licensing 
authority  shall  be  empowered  to  withhold  licenses  for  a 
settlement  when  in  its  opinion  a  prima  facie  case  of 
reasonable  objection  has  been  established  by  one  or  more 
creditors  within  the  stipulated  time  on  the  ground  that 
the  proposed  settlement  would  lead  to  a  preference  be- 
tween creditors  or  to  bankruptcy  of  or  foreclosure  pro- 
ceedings against  the  debtor. 

(ii)  Public  bodies  and  their  agencies  will  be  per- 
mitted in  accordance  with  special  licenses  issued  pur- 
suant to  M.  G.  Laws  Nos.  52  and  53,  to  enter  into  volun- 
tary agreements  with  foreign  owners  of  foreign  currency 
claims  to  settle  such  claims  in  DM  provided  that  such 
settlements  can  be  made  by  the  public  body  or  agency 
thereof  without  impairing  other  obligations  or  causing 
additional  "borrowing  and  that  the  conditions  .set  forth 
in  subparagraphs  (6)  (i)  (a)  (b)  (e)  and  (d)  above 
are  met. 

(ill)  As  used  herein,  the  term  "foreign  owners" 
shall  mean  owners  who  are  not  residents  of  the  area 
constituting  "Das  Deutsche  Reich"  as  it  existed  on  31 
December  1937. 

B.  It  is  not  intended  that  the  provisions  of  paragraph 
A.  above  will  result  in  unduly  increasing  foreign  owner- 
ship in  industry  and  commerce  in  the  Federal  Republic. 
Therefore,  appropriate  limitations  may  subsequently  be 
imposed  on  the  provisions  of  paragraph  A.  should  deter- 
mination be  made  that  an  undue  proportion  of  industry 
and  commerce  in  the  Federal  Republic  would  otherwise 
come  under  foreign  ownership.  Moreover,  any  licenses 
issued  pursuant  to  the  provisions  of  paragraph  A.  above 
shall  provide  that  the  parties  to  the  transactions  are  not 
thereby  exonerated  from  the  requirement  of  full  com- 
pliance with  decartelisiation  and  deconcentration  legis- 
lation in  force  in  the  Federal  Republic. 


U.S.  Will  Designate  Civilian 
High  Commissioner  for  Austria 

Following  is  the  te.i-t  of  the  United  States  note  sent  by 
Ambassador  Alan  O.  Kirk  to  A.  Y.  Yyshinsky,  the  Minister 
for  Foreign  Affairs  of  the  Soviet  Union,  on  June  12,  1950, 
and  released  to  the  press  on  June  15. 

I  have  the  honor  to  refer  to  the  situation  in 
which  the  deputies  for  the  Austrian  treaty  nego- 
tiations have  been  unable  to  reach  agreement  on 
tlie  terms  of  an  Austrian  state  treaty.  It  will  be 
recalled  that  Austrian  independence  was  pledged 
in  the  Moscow  Declaration  of  1943,  and  my  Gov- 
ernment regrets  exceedingly  the  failure  to  reach 
an  agreement  which  would  result  in  the  fulfillment 
of  this  pledge. 

The  Foreign  Ministers  of  the  United  Kingdom, 
France,  and  the  United  States  at  their  meeting 
in  London  on  May  18  reaffirmed  that  their  policy 
with  respect  Austria  requires  the  earliest  possible 
completion  of  an  Austrian  treaty  which  will  lead 
to  the  restoration  of  a  free  and  independent  Aus- 
tria in  accordance  with  the  pledge  given  in  the 
Moscow  Declaration  and  to  the  withdrawal  of  the 
forces  of  occupation.  The  three  governments 
further  agreed  that  they  are  ready  at  any  time  to 
settle  without  delay  all  outstanding  issues  of  the 
treaty,  provided  that  this  will  definitely  bring 
about  agreement  on  the  treaty  as  a  whole. 

In  the  absence  of  a  treaty,  the  three  governments 
agreed  that  they  are  prepared  to  carry  out  such 
measures  as  may  properly  be  taken  to  strengthen, 
within  the  framework  of  existing  quadripartite 
agreements,  the  authority  of  the  Austrian  Gov- 
ernment and  to  lighten  the  burden  of  the  occupa- 
tion on  Austria  to  the  greatest  extent  possible  as 
requested  by  the  Austrian  Government  in  recent 
notes  to  the  occupying  powers.  The  three  For- 
eign Ministers  further  agreed  to  proceed  at  an 
early  date  to  appoint  civilian  high  commissioners 
in  Austria  in  accordance  with  the  provisions  of 
Article  9  of  the  Control  Agreement  of  June  28, 

My  Government  would  be  pleased  if  the  Gov- 
ernment of  the  Soviet  Union,  pending  final  de- 
cision on  the  treaty,  would  associate  itself  with 
the  program  determined  upon  by  the  three  For- 
eign Ministers.  In  the  meantime,  my  Govern- 
ment will,  on  its  part,  as  a  first  step  in  such  a  pro- 
gram, proceed  at  an  early  date  to  designate  a 
civilian  high  commissioner  to  replace  its  present 
military  commander  in  Austria  and  hopes  that  the 
Soviet  Government  will  take  similar  action. 

Visit  of  Burmese  Banker 

Mr.  Tin  Tun,  chief  accountant  of  the  Union 
Bank  of  Burma,  has  arrived  in  Washington  to 
begin  a  3-month  visit  in  the  United  States  for  the 
purpose  of  observing  financial  institutions. 

Department  of  State   Bulletin 


iy  George  L.  'Warren 

The  General  Council  of  the  International  Ref- 
ugee Organization  (Iro)  held  its  fifth  session  in 
Geneva  from  March  14  through  March  22,  1950. 
The  Executive  Committee  met  concurrently  from 
March  8  through  March  21, 1950. 

At  the  fourth  session  of  the  Council  held  in  Ge- 
neva in  October  1949,  the  General  Council  decided 
to  extend  the  period  of  Iro  operations  from  June 
30,  1950,  to  March  31,  1951,  in  order  to  complete 
the  task  of  resettling  all  eligible  refugees  in  central 
Europe  who  might  qualify  for  resettlement  and  to 
complete  arrangements  for  the  continuing  care  of 
refugees  requiring  permanent  institutional  treat- 
ment. It  was  planned  at  the  fifth  session  of  the 
Council  to  review  the  remaining  tasks  facing  Iro 
to  reach  more  specific  decisions  as  to  the  termina- 
tion of  services  and  to  give  further  consideration 
to  the  organization  of  legal  protection  for  refugees 
under  the  objectives  of  the  United  Nations  after 
the  termination  of  Iro.  The  Executive  Committee 
was  convened  on  March  8,  1950,  to  consider  and 
to  comment  upon  reports  of  the  Director-General 
to  be  transmitted  thereafter  to  the  General  Council 
for  action. 

Of  the  18  member  governments  of  Iro,  16  were 
represented  at  the  meeting ;  China  and  Iceland  not 
being  represented :  ^ 






New  Zealand 



Dominican  Republic 



United  Kingdom 


United  States 



Chairman;  Dr.  V.  Montoya  of  Venezuela  as  Sec- 
ond Vice-Chairman ;  and  Mr.  A.  B0gh-Andersen 
of  Denmark  as  rapporteur. 

Executive  Committee 

The  Executive  Committee  considered  the  semi- 
annual report  of  the  Dii-ector-General  for  the  pe- 
riod July  1  through  December  31,  1949;  partial 
financial  reports  for  the  first  and  second  quarters 
of  the  fiscal  year  1949-50;  and  gave  attention  to 
the  problems  of  the  resettlement  of  refugees  re- 
maining in  Shanghai  and  on  the  island  of  Samar 
in  the  Philippines.  Incidental  to  its  consideration 
of  the  Director-General's  report  it  recommended 
that  the  Council  approve  the  recommendation  of 
the  Director-General  that  all  refugees  qualifying 
for  resettlement  for  whom  definite  destinations 
were  available  should  be  maintained  in  Iro  camps 
after  June  30,  1950,  until  their  resettlement  had 
been  accomplished. 

This  decision  while  maintaining  the  principle 
of  earlier  resolutions  was  taken  in  the  conviction 
that  such  action  would  facilitate  the  movement  of 
these  refugees  and  contribute  to  the  greater  ac- 
complishment of  the  task  remaining  before  Iro. 

The  Committee  noted  with  satisfaction  that  the 
Director-General  had  made  available  without  cost 
to  the  United  Nations  Relief  for  Palestinian  Ref- 
ugees, in  accordance  with  authority  previously 
given,  approximately  600,000  dollars  in  supplies 

Dr.  P.  J.  de  Kanter  of  the  Netherlands  presided 
as  Chairman  of  the  Council  for  the  session.  Mr. 
P.  Zutter  of  Switzerland  served  as  First  Vice- 

'  Representatives  of  the  Governments  of  Israel,  Mexico, 
and  Sweden,  of  the  United  Nations,  the  Vatican,  Ilo,  and 
Who  also  attended  as  official  observers  and  representa- 
tives of  many  voluntary  agencies  serving  refugees  were 

Jo/y  ?0,  1950 


surplus  to  Iro  operations  and  that  Iro  had  com- 
pleted arrangements  to  make  an  interest-free  loan 
to  the  United  Nations  in  an  amount  of  2,800,000 
dollars  in  other  currencies  than  United  States  dol- 
lars for  the  relief  of  Palestinian  refugees. 

The  Committee  also  welcomed  information  from 
the  Director-General  that  negotiations  with  the 
Western  European  countries  for  the  transfer  of 
Iro  responsibility  with  respect  to  residual  refugees 
who  will  remain  on  their  territories  had  proceeded 
satisfactorily.  The  plan  of  expenditure  for  the 
supplementary  period  of  operations  1950-51  pre- 
sented by  the  Director-General  totaling  55,165,456 
dollars  was  recommended  to  the  General  Council 
for  adoption.  Included  in  these  expenditures  was 
an  item  of  27,219,000  dollars  for  transportation 
covering  the  cost  of  movement  of  approximately 
100,000  refugees  to  the  United  States,  20,000  to 
Australia,  10,000  to  Canada,  and  17,000  to  all  other 

General  Council 

The  General  Council  accepted  the  reports  of  the 
Director-General;  adopted  the  plan  of  expendi- 
ture for  the  supplementary  period  after  June  30, 
1950;  and  approved  the  decision  to  maintain  re- 
settleable  refugees  in  camps  after  June  30,  1950, 
until  their  resettlement  had  been  accomplished. 
The  Council  gave  serious  attention  to  the  financial 
reports  and  urged  the  Director-General  to  pay 
particular  attention  to  the  control  and  reduction 
of  inventory  supplies  in  order  that  all  resources 
of  the  organization  might  be  fully  applied  to  the 
accomplishment  of  the  remaining  tasks.  The 
Council  also  gave  special  consideration  to  the 
problems  of  refugees  remaining  in  Austria  and 
Italy  and  urged  the  Director-General  to  make 
special  efforts  to  reduce  the  number  of  refugees 
in  those  countries  in  order  that  they  might  not  be 
further  burdened  after  the  termination  of  Iro  by 
refugees  remaining  in  their  territories.  AVith  re- 
spect to  the  problem  of  protection  of  refugees 
particularly  in  Germany  the  Council  recom- 
mended to  the  High  Commission  for  Germany 
that  the  German  Federal  Government  be  requested 
to  give  consideration  to  adherence  to  the  draft 
convention  on  the  protection  of  refugees  presently 
under  consideration  by  the  Economic  and  Social 
Council  when  this  convention  becomes  open  for 

On  the  initiative  of  the  representative  of 
France,  the  Council  sent  a  further  communication 

to  the  United  Nations  with  respect  to  the  afford- 
ing of  protection  to  refugees  by  the  High  Com- 
missioner for  Refugees  when  he  assumes  office  on 
January  1,  1951.  It  was  recommended  that  cer- 
tain listed  provisions  of  the  Iro  constitution  which 
were  deemed  no  longer  applicable  to  the  provi- 
sion of  protection  to  refugees  should  not  be  ap- 
plied and  that  the  High  Commissioner  should  not 
be  bound  in  his  activities  by  decisions  which  the 
Iro  had  found  it  necessary  to  take  restricting  its 
services  to  refugees  for  administrative  or  financial 
reasons.  In  the  course  of  the  discussion  on  the 
adoption  of  this  recommendation  to  the  United 
Nations,  the  United  States  representative  made  a 
statement  that  the  United  States  Government 
would  not  find  it  possible  to  make  a  further  con- 
tribution to  Iro  after  the  contribution  for  the  sup- 
plementary period  June  30,  1950-March  31,  1951, 
then  under  consideration  in  the  Congress,  had  been 
made.  This  statement  reflected  the  judgment  that 
ujion  the  conclusion  of  Iro  services  in  1951  the 
need  for  international  funds  for  the  direct  as- 
sistance of  refugees  would  no  longer  exist  because 
the  numbers  of  refugees  remaining  in  any  par- 
ticular country  will  not  constitute  more  than  a 
normal  burden  upon  that  country. 

A  decision  was  also  reached  by  the  General 
Council  with  respect  to  the  termination  of  the  In- 
ternational Tracing  Service  which  has  done  com- 
mendable work  in  reuniting  members  of  families, 
in  locating  missing  children,  and  in  supplying  in- 
valuable records  concerning  the  experiences  of 
refugees  and  displaced  persons  during  the  war. 
The  Director-General  was  instructed  to  reduce  the 
staff  of  the  Service  progressively  with  the  view  to 
the  ultimate  transfer  of  the  function  of  tracing 
missing  persons  to  the  High  Commission  for  Ger- 
many on  March  31, 1951. 

The  Director-General  re^Dorted  satisfactory 
progress  in  concluding  arrangements  for  the  con- 
tinuing care  of  refugees  for  whom  institutional 
treatment  must  be  provided  after  the  termination 
of  Iro.  The  details  of  such  arrangements  with 
Norway,  Sweden.  Belgium,  and  New  Zealand  were 
made  known  to  the  Council,  and  during  the  course 
of  the  session  the  French  Government  announced 
its  agreement  to  receive  900  aged  persons  from 
Germany  for  permanent  care  in  private  institu- 
tions in  France. 

The  Council  adjourned  its  fifth  session  on  March 
22, 1950,  after  resolving  to  convene  its  next  session 
at  Geneva  on  or  about  October  9, 1950. 


Deparfment  of  State  Bulletin 



Report  on  Department's 
Security  Program  Being  Studied 

[Released  to  the  press  June  15] 

The  Department  has  just  received  the  report 
of  the  Subcommittee  of  Two  ^  concerning  tlie 
practical  operations,  enforcement,  and  day-to-day 
policing  of  the  security  program  in  the  Depart- 
ment of  State.  The  Department  is  very  happy  to 
observe  that  they  felt  that  the  security  officers 
■whom  they  interviewed  are  alert,  capable,  and 
well-trained  men  with  a  thorough  grasp  of  their 
subject.  The  report  contains  suggestions  de- 
signed to  improve  the  Department's  security  pro- 
gram in  certain  particulars.  These  suggestions 
were  made  in  a  constructive  spirit,  and  we  are 
examining  them  most  carefully  in  order  to  deter- 
mine whether  they  should  be  put  into  effect  and 
whether  they  are  possible  in  the  light  of  our  cur- 
rent budgetary  situation. 

One  suggestion  on  which  particular  comment 
might  be  appropriate  is  that  aliens  employed  by 
the  Department  abroad  should  be  replaced  as  rap- 
idly as  possible  with  United  States  citizens.  The 
difficult  administrative,  budgetary,  and  human 
problems  which  such  a  project  presents  have  been 
under  consideration  for  some  time,  and  a  gradual 
program  of  replacement  is  now  under  way. 

In  considei'ing  this  problem,  however,  it  should 
be  borne  in  mind  that  the  great  bulk  of  these  em- 
ployees are  engaged  in  routine  and  administrative 
tasks  completely  removed  from  matters  involving 
any  classifaed  data  or  questions  relating  to  national 
security.  Many  of  these  aliens  have  been  in  the 
employ  of  the  United  States  Government  for  10, 
20,  and  30  years.  They  have  demonstrated,  often 
in  exceedingly  trying  circumstances  and  some  at 
the  cost  of  their  lives,  that  they  are  carrying  out 
their  assigned  duties  faithfully  and  with  great 
credit  both  to  the  United  States  and  to  themselves. 
The  value  of  their  services  must  not  be  overlooked. 

'The  subcommittee  of  the  Senate  Foreign  Relations 
Committee,  that  is  investigating  the  charges  of  Senator 
McCarthy  of  Communist  penetration  of  the  Department 
of  State,  appointed  a  subcommittee,  consisting  of  Sen- 
ators Theodore  Francis  Green  and  Henry  Cabot  Lodge, 
Jr.,  to  inspect  precautions  that  the  Department  is  taking 
in  its  missions  abroad  against  Communist  espionage.  The 
Senators  made  an  11-day  inspection  trip  abroad  and 
submitted  their  report  on  June  14. 

Recent  Releases 

For  sale  hy  the  Superintendent  of  Documents,  Oovem- 
ment  Printing  Office,  Wushinriton  25,  D.  C.  Address  re- 
quests direct  to  the  Suixrinlcndcnt  of  Documents,  except 
in  the  case  of  free  puhlications,  which  may  he  obtained 
from  the  Department  of  State. 

Air  Transport  Services.  Treaties  and  Other  International 
Acts  Series  1955.     Pub.  3011.     15  pp.     10«f. 

Agreement  and  accompanying  exchange  of  notes  be- 
tween the  United  States  and  the  Dominican  Re- 
public— Signed  at  Ciudad  Trujillo  July  19,  1949;  en- 
tered into  force  July  19,  1949. 

Economic  Cooperation  With  Sweden  Under  Public  Law 
472 — 80th  Congress,  as  amended.  Treaties  and  Other 
International  Acts  Series  2034.     Pub.  3776.     9  pp.     5^. 

Agreement  between  the  United  States  and  Sweden, 
amending  agreement  of  July  3,  1948 — Effected  by  ex- 
change of  notes,  signed  at  Washington  January  5  and 
17,  1950 ;  entered  into  force  January  17,  1950. 

Foreign  Service  List,  April  1,  1950.  Pub.  3792.  165  pp. 
30^  a  copy ;  $1.50  a  year  domestic,  $2  a  year  foreign. 

Lists  officers  in  the  American  Foreign  Service,  their 
po.sts  of  assignment,  and  2  indexes :  geographic  and 

United  States  Educational  Foundation  in  Egypt.  Trea- 
ties and  Other  International  Acts  Series  2039.     Pub.  3799. 

11  pp.    5^. 

Agreement  between  the  United  States  and  Egypt — 
Signed  at  Cairo  November  3,  1949 ;  entered  Into  force 
November  3,  1949  and  exchange  of  notes — Signed  at 
Cairo  November  3,  1949. 

Economic  Cooperation  With  Denmark  Under  Public  Law 
472 — 80th  Congress,  as  amended.  Treaties  and  Other 
International  Acts   Series   2022.     Pub.   3802.     9  pp.     5(f. 

Agreement  between  the  United  States  and  Denmark 
amending  agreement  of  June  29,  1948 — Effected  by  ex- 
change of  notes,  signed  at  Wa.shington  February  7, 
1950;  entered  into  force  February  7,  1950. 

Economic  Cooperation  With  Italy  Under  Public  Law  472 — 
80th  Congress,  as  amended.  Treaties  and  Other  Inter- 
national Acts  Series  2028.     Pub.  3804.     9  pp.     5^. 

Agreement  between  the  United  States  and  Italy- 
Effected  by  exchange  of  notes,  signed  at  Washington 
February  7,  1950 ;  entered  into  force  February  7,  1950. 

Mutual  Defense  Assistance.  Treaties  and  Other  Inter- 
national Acts  Series  2016.     Pub.  3805.     21  pp.     100. 

Agreement  between  the  United  States  and  Norway — 
Signed  at  Washington  January  27,  1950;  entered  into 
force  February  24,  1950. 

U.S.  National  Commission  UNESCO  News,  April  1950. 

Pub.  3807.  16  pp.  100  a  copy;  $1.00  per  year,  domestic; 
$1.35  per  year,  foreign. 

Prepared  monthly  for  the  United  Nations  Educa- 
tional, Scientific  and  Cultural  Organization. 

July   10,   1950 


The  United  States  in  the  United  Nations 

Security  Council 

[July  1-7] 

On  July  7,  the  Security  Council  approved  a  joint 
French-British  resolution  which  recommends  that 
United  Nations  members  providing  military  forces 
under  the  Council  resolutions  on  Korea  make  such 
forces  available  to  a  unified  command  under  the 
United  States  and  requests  the  United  States  to 
designate  the  commander  of  such  forces.  This 
unified  command  is  authorized,  at  its  discretion, 
to  use  the  United  Nations  flag  in  the  course  of 
operations  against  North  Koi'ean  forces,  together 
with  the  flags  of  the  various  nations  participating. 
The  United  States  is  asked  to  report  to  the  Coun- 
cil, as  ajapropriate,  on  the  course  of  action  taken 
under  the  unified  command.  Seven  votes  sup- 
ported the  resolution,  and  none  opposed  it. 
Egypt,  India,  and  Yugoslavia  abstained. 

Ambassador  Warren  R.  Austin  told  the  Council 
that  the  United  States  accepted  the  responsibilities 
placed  upon  it  by  this  resolution,  adding  that  the 
United  States  Government  had  not  sponsored  the 
resolution  because  of  the  "special  responsibilities" 
imposed  on  her  by  the  resolution. 

Secretary-General's  Communique  on  Korea 

Following  the  adoption  by  the  Security  Council 
on  June  27  of  a  resolution  recommending  the 
United  Nations  members  "furnish  such  assistance 
to  the  Republic  of  Korea  as  may  be  necessary  to 
repel  the  armed  attack  and  to  restore  international 
peace  and  security  in  that  area,"  the  Secretary- 
General  of  the  United  Nations  sent  the  following 
telegram  to  member  governments : 

I  have  the  honour  to  call  the  attention  of  your  Govern- 
ment to  the  resolution  adopted  by  the  Security  Council 
at  its  474th  meeting  on  27  June  1950  which  recommends 
that  the  Members  of  the  United  Nations  furnish  such 
assistance  to  the  Republic  of  Korea  as  may  he  necessary 
to  repel  the  armed  attack  and  to  restore  international 
peace  and  security  in  that  area.  In  the  event  that  your 
government  is  in  a  position  to  provide  assistance,  it  would 
facilitate  the  implementation  of  the  resolution  if  you  were 
to  be  so  good  as  to  provide  me  with  an  early  reply  as  to 
the  type  of  assistance.  I  shall  transmit  the  reply"  to  the 
Security  Council  and  to  the  Government  of  the  Republic 
of  Korea. 

By  July  10,  the  following  states,  in  communica- 

tions to  the  Secetary-General,  had  indicated  their 
support  of  Security  Council  action  with  respect 
to  Korea : 

Costa  Rica 

El  Salvador 















New  Zealand 











Union  of 

South  Africa 
United  Kingdom 
United  States 

The  following  states  had  not  replied  to  the 
Secretary-General's  communication  on  Korea : 

Byelorussia  Ukraine 

Egypt '  Yugoslavia  ^ 


The  U.S.S.R.,  Czechoslovakia,  and  Poland  have 
rejected  as  "illegal"  the  Security  Council  action 
on  Korea.  Yemen  took  note  of  the  resolution  of 
June  25,  calling  for  a  cease-fire  in  Korea,  and  Saudi 
Arabia  took  note  of  the-resolution  of  June  27. 

The  Council  of  tlie  Organization  of  American 
States  on  June  28  adopted  a  resolution  declaring 
"its  firm  adherence  to  the  decisions  of  the  compe- 
tent organs  of  the  United  Nations."  Italy,  a  non- 
member  of  the  United  Nations,  has  also  indicated 
general  support  for  Security  Council  action  on 

Following  is  a  letter,  dated  July  6,  1950,  from  Ambassa- 
dor Warren  R.  Austin  to  Sccretary-Oeneral  Trygve  hie 
concerning  United  States  assistance  to  Korea:' 

Upon  the  instruction  of  my  Government,  I  have 
the  lionor  to  acknowledge  receipt  of  your  com- 
munication of  June  29,  1950,  in  which  you  request 
information  concerning  the  type  of  assistance  the 
Government  of  the  United  States  is  prepared  to 

'  These  two  states  are  members  of  the  Security  Council ; 
Yugoslavia  voted  against  the  resolution  of  June  27 ;  and 
Egypt  did  not  participate  in  the  decision. 

'  U.N.  doe.  S/1580. 


Department  of  State  Bulletin 

offer  pursuant  to  the  resolution  adopted  by  the 
Security  Council  on  June  27,  1950,  which  recom- 
mends that  the  Members  of  the  United  Nations 
furnish  such  assistance  to  the  Republic  of  Korea 
as  may  be  necessary  to  repel  the  armed  attack  and 
to  restore  international  peace  and  security  in  the 

In  response  to  your  request,  I  am  authorized  to 
inform  you  that,  in  support  of  the  resolutions 
approved  by  the  Security  Council  relative  to  the 
attack  upon  the  Republic  of  Koi'ea  by  invading 
forces  from  North  Korea,  the  President  of  the 
United  States  has  ordered  United  States  air  and 
sea  forces  to  give  the  Korean  Government  troops 
cover  and  support  and  has  authorized  the  use  of 
certain  supporting  ground  units.  The  President 
has  also  authorized  the  United  States  Air  Force 
to  conduct  missions  on  siJecific  military  targets  in 
Northern  Korea  wherever  militarily  necessary  and 
has  ordered  a  naval  blockade  of  the  entire  Korean 
coast.  The  United  States  will  continue  to  dis- 
charge its  obligations  as  a  member  of  the  United 
Nations  to  act  vigorously  in  support  of  the  Se- 
curity' Council's  resolutions. 

The  United  Kingdom,  New  Zealand,  Australia, 
Canada,  China,  and  the  Netherlands  have  offered 
specific  military  assistance.  In  addition,  Chile 
has  offered  "regular  and  adequate  supplies  of 
cooper,  saltpetre,  and  other  strategic  materials  to 
countries  responsible  for  operations";  Thailand 
has  offered  foodstuffs,  such  as  rice;  Denmark  has 
offered  to  make  available  certain  medicaments; 
Norway  has  suggested  that  its  tonnage  might  be 
offered  for  transportation  purposes;  Nicaragua 
has  stated  that  she  is  prepared  to  assist  in  food- 
stuffs and  rubber,  and  if  deemed  advisable,  to 
contribute  pei'sonnel;  and  the  Philijipines  is  pre- 
pared to  contribute,  as  called  upon,  such  amounts 
of  copra,  coconut  oil,  soap,  rice,  and  certain  medi- 
caments as  may  help  to  facilitate  the  implementa- 
tion of  the  resolution. 

Economic  and  Social  Council 

The  United  Nations  experts'  recommendations 
on  full  employment,  the  related  item  on  methods 
of  financing  of  economic  development  of  under- 
developed countries,  and  the  draft  Covenant  on 
Human  Rights  are  among  the  main  topics  on  the 
52-item  agenda  adopted  by  the  Economic  and 
Social  Council  at  the  opening  of  its  eleventh  ses- 
sion at  Geneva  on  July  3.  The  Council  will  also 
review  reports  of  a  number  of  its  subsidiary  bodies 
and  of  the  specialized  agencies.  Representatives 
of  the  Soviet  Union,  Poland,  and  Czechoslovakia 
were  absent. 

The  Council  decided  to  refer  the  draft  Human 

Rights  Covenant  to  the  Social  Committee  for  con- 
sideration of  the  draft's  broad  aspects  with  a  view 
to  transmitting  it  with  relevant  documentation  to 
the  General  Assembly.  The  United  States  repre- 
sentative supported  this  proposal  on  the  under- 
standing that  the  Committee  would  consider  only 
the  general  aspects  of  the  Covenant,  although 
earlier  he  had  supported  a  recommendation  to  send 
the  Covenant  to  the  General  Assembly  without 

The  Secretary-General's  arrangements  for  a 
training  program  in  public  administration  were 
noted  with  approval  by  the  Council,  which  recom- 
mended that  additional  activities  undertaken  in 
the  field  of  training  in  public  administration,  at 
the  request  of  member  governments,  be  considered 
under  the  expanded  program  of  technical  assist- 
ance. The  United  States  representative's  endorse- 
ment of  this  Council  action  was  based  on  the  under- 
standing that  activities  financed  under  the  tech- 
nical assistance  account  would  be  limited  to  re- 
quests from  underdeveloped  countries. 

Trusteeship  Council 

On  July  5  and  6,  the  Trusteeship  Council  heard 
and  discussed  statements  from  representatives  of 
various  groups  in  French  and  British  Togoland 
to  which  the  Council  had  earlier  agreed  to  grant 
oral  hearings  in  connection  with  certain  petitions. 
Following  statements  by  representatives  of  the 
All-Ewe  Conference,  the  Togoland  Union,  the 
Supreme  Council  of  Natural  Rulers  of  Togoland, 
and  the  Togoland  Progress  Party,  Council  mem- 
bers questioned  them  on  their  various  proposals 
for  unification  of  the  Ewe  people  and  Togoland 
and  on  the  comparative  strength  of  Togolese  ad- 
herence to  their  views. 

The  first  two  parts  of  the  Council's  report  on 
the  United  States  annual  report  on  the  trust  terri- 
tory of  the  Pacific  Islands  and  the  entire  Council 
report  on  Australia's  annual  report  on  New  Guinea 
were  adopted  on  July  6. 

International  Civil  Aviation  Organization 

The  assembly  of  the  International  Civil  Avia- 
tion Organization,  after  a  3-week  review  of  the 
entire  field  of  international  air  transport,  con- 
cluded its  fourth  session  at  Montreal  on  June  20. 
The  Assembly  approved  the  report  of  the  Icao 
Council  relating  to  its  work  of  the  past  year  and 
elected  a  new  Council  of  20  nations  to  serve  as 
IcAo's  executive  body  for  the  next  3  years.  The 
Assembly  also  took  action  on  a  number  of  matters 
in  the  technical,  economic,  legal,  and  administra- 
tive fields. 

July    10,    7950 


Genera!  Policy 

Act  of  Aggression  in  Korea:  Page 

Review  of  U.N.  and  U.S.  Action  To  Restore 

Peace.     Address  by  Secretary  Acheson  .  43 

Tlie  President  Authorizes  Use  of  Ground 

Units 46 

Answer  to  China's  Offer  To  Send  Troops  .  47 
U.S.S.R.  Responds  to  Request  for  Media- 
tion    47 

Precedent  Contradicts  Soviet  Allegation  of 

Illegality  in  U.N.  Action 48 

ECA  Aids  South  Korea 49 

A  Militaristic  Experiment.     Statement  by 

John  Foster  Dulles 49 

Special  Staff  To  Assist  Ambassador  Grady  in 

Iran 59 

Czechoslovak  U.N.   Representative  Resigns; 

U.S.  Grants  Asylum 62 

The  United  Nations  and 
Specialized  Agencies 

Soviet  Walk-Outs  Flout  Democratic  Process 
in  United  Nations.  Statement  by  Francis 
B.  Sayre 61 

Report  on  International  Refugee  Organiza- 
tion.    By  George  L.  Warren 75 

The  United  States  in  the  United  Nations  .    .  78 

Economic  Affairs 

Labor's  Role  in  World  Affairs.     By  Bernard 

Wiesman 54 

Treaty  Information 

The     Need     for     an     International     Trade 
Organization : 
Statement  by  Charles  F.  Brannan,  Secre- 
tary of  Agriculture 67 

Treaty  Information — Continued 

Statement  by  Charles  Sawyer,  Secretary  of     ^^^^ 
Commerce 70 

Occupation  Matters 

Answer    to    Soviet    Protest    on    MacArthur 
Clemency  Circular: 

U.S.  Note  of  June  8,  1950 

Soviet  Note  of  May  11,  1950 

Relaxing  Restrictions  on  Foreign  Investment 

in  Germany 

U.S.  Will  Designate  Civilian  High  Commis- 
sioner for  Austria 

Technical  Assistance 

Carrying  Out  Point  4:  A  Community  Effort. 
Address  by  Secretary  Acheson 

National  Security 

Support  of  Mutual  Defense  Assistance  Pro- 
gram for  1951.  Statement  by  Secretary 

International  Information  and 
Cultural  Affairs 

Visit  of  Burmese  Banker 

The  Department 

Report  on  Department's  Security  Program 
Being  Studied 


Recent  Releases 










Bernard  Wiesman,  autlior  of  the  article  on  labor's  role  iu 
world  affairs,  is  Acting  Labor  Adviser,  Office  of  Assistant  Secre- 
tary for  Economic  Affair.'^. 

Oeorge  L.  Wurren,  author  of  the  article  on  the  Iko,  is  adviser  on 
refugees  and  displaced  per.sons,  Department  of  State.  Mr.  Warren  was 
United  States  representative  to  the  fifth  session  of  the  General  Council 
and  to  the  seventh  session  of  the  Executive  Committee  of  Iro. 


J/ie/  ^eha^t^^en(/  ,c^ t/iaie/ 

U.S.     COMMANDS    U.N.    MILITARY     FORCES     IN 

KOREA  •   Text  of  Security  Council  Resolution   ....  83 

THE  UNITED  NATIONS  AND  KOREA  •  By  Ambassador 

Philip  C.  Jessup 84 

U.S.   MILITARY  ACTIONS    IN   KOREA  •   Address  by 

John  Foster  Dulles 88 

POINT  4:  AN  INVESTMENT  IN  PEACE   •   Address  by 

the  President 93 

For  complete  contents  see  back  cover 

Vol.  XXIII,  No.  576 
July  17,  1950 

^vi®"''  o*. 

^'ATBS  o* 

^^»HT   o. 

*^.wy*.  bulletin 

Vol.  XXIII,  No.  576  •  Publication  3913 
July  17,  1950 

For  sale  by  the  Superintendent  of  Documents 

U.S.  Government  Printing  Office 

Washington  25,  D.C. 


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The  printing  of  this  publication    has 

been  approved   by  the   Director  of   the 

Bureau  of  the  Budget  (February  18, 1949). 

Note;  Contents  of  this  publication  are  not 
copyrighted  and  items  contained  herein  may 
be  reprinted.  Citation  of  the  Department 
or  State  Bulletin  as  the  source  will  be 

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U  i.  W^+-  '>4 

U.N.  Places  Unified  Command 

of  Military  Forces  in  Korea  Under  United  States 


s-v*-vr^i,  (.  V  Va 

III  11  jt^ 


"The  Security  Council, 

"Ha\'ing  determined  that  the  armed  attack  upon 
the  Kepublic  of  Korea  by  forces  from  North 
Korea  constitutes  a  breach  of  the  peace. 

"Having  recommended  that  the  members  of  the 
United  Nations  furnish  such  assistance  to  the  Re- 
public of  Korea  as  may  be  necessary  to  repel  the 
armed  attack  and  to  restore  international  peace 
and  security  in  the  area, 

"1.  Welcomes,  the  prompt  and  vigorous  sup- 
port which  Governments  and  peoples  of  the  United 
Nations  have  given  to  its  resolutions  of  25  and  27 
June  1950  to  assist  the  Republic  of  Korea  in  de- 
fending itself  against  armed  attack  and  thus  to 
restore  international  peace  and  security  in  the 

"2.  Notes  that  members  of  the  United  Nations 
have  transmitted  to  the  United  Nations  offers  of 
assistance  for  the  Republic  of  Korea ; 

"3.  Recommends  that  all  members  providing 
military  forces  and  other  assistance  pursuant  to 
the  aforesaid  Security  Council  resolutions  make 
such  forces  and  other  assistance  available  to  a  uni- 
fied command  under  the  United  States; 

"4.  Bequests  the  United  States  to  designate  the 
commander  of  such  forces ; 

"5.  Authorises  the  unified  command  at  its  dis- 
cretion to  use  the  United  Nations  flag  in  the  course 
of  operations  against  North  Korean  forces  concur- 
rently with  the  flags  of  the  various  nations 

"6.  Bequests  the  United  States  to  provide  the 
Security  Council  with  reports  as  appropriate  on 
tlie  course  of  action  taken  under  the  unified 


Statement  by  the  President 

[Released  to  the  press  by  the  White  House  July  8] 

The  Security  Council  of  the  United  Nations,  in 
its  resolution  of  July  7,  1950,  has  recommended 
that  all  members  providing  military  forces  and 
other  assistance  pursuant  to  the  Security  Council 
resolutions  of  June  25  and  27,  make  such  forces  and 
other  assistance  available  to  a  unified  command 
under  the  United  States. 

The  Security  Council  resolution  also  requests 
that  the  United  States  designate  the  commander 
of  such  forces,  and  authorizes  the  unified  command 
at  its  discretion  to  use  the  United  Nations  flag  in 
the  course  of  operations  against  the  North  Korean 
forces  concurrently  with  the  flags  of  the  various 
nations  participating. 

I  am  responding  to  the  recommendation  of  the 
Security  Council  and  have  designated  General 
Douglas  MacArthur  as  the  Commanding  General 
of  the  military  forces  which  the  members  of  the 
United  Nations  place  under  the  unified  command 
of  the  United  States  pursuant  to  the  United  Na- 
tions' assistance  to  the  Republic  of  Korea  in  repel- 
ling the  unprovoked  armed  attack  against  it. 

I  am  directing  General  MacArthur,  pursuant  to 
the  Security  Council  resolution,  to  use  the  United 
Nations  flag  in  the  course  of  operations  against  the 
North  Korean  forces  concurrently  with  the  flags 
of  the  various  nations  participating. 

'  Introduced  by  France  and  U.K.  (S/1588)  and  adopted 
on  .luly  7  by  a  vote  of  7  to  0,  with  3  abstentions  (Egypt, 
India,  and  Yugoslavia)  ;  Soviet  Union  was  absent. 

July  17,   1950 

Ambassador  Austin  Comments  on  Resolution 

On  July  7,  Ambassador  Austin  told  the  Security 
Council  that  the  United  States  accepts  the  responsi- 
bility and  makes  the  sacrifice  that  is  involved  in 
carrying  out  these  principles  of  the  United  Nations. 
In  spirit,  if  not  in  word,  this  resolution  has  been  in 
efCect  since  the  very  first  resolution  was  adopted 
in  response  to  the  call  for  help  from  Korea. 


The  United  Nations  and  Korea 

hy  Philip  0.  Jessup 
Atribassador  at  Large  ^ 

The  Communist-inspired  attack  on  the  Repub- 
lic of  Korea  is  the  most  barefaced  attack  on  the 
United  Nations  itself.  An  assault  upon  the 
United  Nations  headquarters  at  Lake  Success 
could  hardly  have  been  more  direct  or  more  re- 
vealing. Of  all  the  countries  in  the  world,  none 
is  more  closely  identified  with  the  United  Nations 
than  the  Republic  of  Korea.  Despite  the  ac- 
tions of  the  Soviet  Union,  from  March  20,  1946, 
to  September  23,  1947,  to  prevent  the  establish- 
ment of  Korea  as  a  free  and  independent  nation, 
the  United  Nations  helped  to  set  it  up  when  the 
United  States  laid  the  case  of  Korea  before  the 
world  organization. 

As  could  be  expected,  the  propaganda  of  world- 
wide Communist  imi^erialism  has  tried  to  hide  its 
aggression  under  a  flood  of  lies.  As  Al  Smith 
used  to  say,  "Let's  look  at  the  record." 

Record  on  Korea 

Fortunately,  the  record  is  crystal  clear.  There 
have  been  times  in  history  when  serious  and  con- 
scientious scholars  have  debated  the  question 
"Wlro  started  the  war?"  No  serious  or  conscien- 
tious scholar  can  have  any  question  here.  The 
North  Korean  Communist  forces  attacked  the  Re- 
public of  Korea  without  warning,  without  provo- 
cation, without  any  justification  whatsoever.  It 
has  never  been  more  true  than  in  this  case  that 
actions  speak  louder  than  words.  Communist 
peace  propaganda  has  sought  to  lull  the  peoples 
of  the  free  world  at  the  very  moment  when  Com- 
munist imperialism  was  preparing  and  launching 
this  war  of  aggression. 

Knowledge  of  the  facts  of  the  situation  does 
not  depend  upon  statements  by  the  Korean  Gov- 
ernment nor  upon  statements  by  the  Americans 

*  Highlights  of  an  address  made  before  the  Institute  of 
Public  Affairs,  University  of  Virginia,  Charlottesville,  Va., 
on  July  10  and  released  to  the  press  on  the  same  date. 

on  the  spot.  The  United  Nations  has  a  Commis- 
sion in  Korea.  At  the  last  meeting  of  the  General 
Assembly,  this  Commission  was  specifically  au- 
thorized to  have  teams  of  observers  to  watch  the 
38th  parallel,  north  of  which  the  Communist 
forces  were  entrenched.  This  United  Nations 
Commission  is  composed  of  representatives  of  the 
following  countries:  Australia,  China,  India,  EI 
Salvador,  Turkey,  the  Philippines,  and  France. 
The  Commission's  team  of  observers  had  con- 
cluded an  on-the-spot  survey,  barely  24  hours  be- 
fore the  Communist  forces  attacked.  Here  is 
what  these  impartial  United  Nations  representa- 
tives reported. 


The  principal  impression  left  with  observers  after 
their  field  tour  is  that  the  South  Korean  Army  is  organized 
for  defense  and  is  in  no  condition  to  carry  out  an  attack 
on  a  large  scale  against  forces  of  the  North  .  .  . 

This  impression,  they  said,  was  based  on  eight 
observations  including  the  facts  that  "there  is  no 
concentration  of  [South  Korean]  troops  and  no 
massing  for  attack  visible  at  any  point". 

At  several  points,  North  Korean  forces  are  in  effec- 
tive possession  of  salients  on  the  south  side  of  the  par- 
allel, occupation  in  at  least  one  case  being  of  fairly  recent 
date.  There  is  no  evidence  that  South  Korean  forces 
have  taken  any  steps  for  or  making  any  preparation  to 
eject  North  Korean  forces  from  any  of  these  salients  .  .  . 

So  far  as  the  equipment  of  South  Korean  forces  Is  con- 
cerned, in  absence  of  armour,  air  support,  and  heavy 
artillery,  any  action  with  object  of  invasion  would,  by 
any  military  standards,  be  impossible  .  .  . 

In  general,  they  reported,  the  attitude  of  South  Korean 
commanders  is  one  of  vigilant  defense.  Their  instruc- 
tions do  not  go  beyond  retirement  in  case  of  attack  upon 
previous  prepared  positions  .  .  . 

Immediately  after  the  Communist  forces  of  the 


Hepaiimen^  of  Stale  Bulletin 

North  attacked  and  began  their  invasion  of  the 
Eepublic  of  Korea  the  United  Nations  Commis- 
sion reported  as  follows  to  Secretary-General  Lie : 

Commission  met  this  morning  1000  hours  and  con- 
sidered latest  reports  on  hostilities  and  results  direct 
observation  along  parallel  by  Uncok  Military  observers 
over  period  ending  forty-eight  hours  before  hostilities  be- 
gan. Commission's  present  view  on  basis  this  evidence 
is  first  that  judging  from  actual  progress  of  operations 
Northern  Regime  is  carrying  out  well-planned  concerted 
and  full  scale  invasion  of  South  Korea,  second  that  South 
Korean  forces  were  deployed  on  wholly  defensive  basis  in 
all  sectors  of  the  parallel  and  third,  that  they  were  taken 
completely  by  surprise  .  .  . 

The  Security  Council  had  the  evidence  and 
passed  judgment  immediately.  The  judgment  of 
the  Security  Council  is  the  judgment  of  the  world 
organization.  The  Communist  invaders  have  been 
adjudged  as  having  launched  an  armed  attack  and 
no  amount'  of  Communist  propaganda  will  succeed 
in  hiding  the  "mark  of  Cain"  on  their  foreheads. 


In  view  of  the  attemjit  of  Communist  propa- 
ganda to  confuse  the  issue  let  us  get  one  other 
point  clear  on  the  record.  The  Communist  forces 
attacked  on  Sunday,  June  25,  at  4 :  00  a.m.,  Korean 
time.  The  United  Nations  Security  Council  met 
at  2 :  00  p.m.  Washington  time  on  Sunday,  June 
25th,  and  by  6 :  00  p.m.  that  afternoon  adopted  a 
resolution  determining  that  the  armed  attack  of 
the  North  Koreans  constituted  a  breach  of  the 
peace.  They  called  upon  all  members  of  the 
United  Nations  to  assist. 

AVliat  had  the  United  States  done  before  the 
Security  Council  issued  this  judgment  and  ap- 
peal? The  only  steps  which  the  United  States 
took  prior  to  6 :  00  p.m.  on  Sunday  were : 


(1)  It  took  the  initiative  in  the  early  morning 
hours  of  Smiday  to  call  the  Security  Council  to 
consider  this  aggression  immediately. 

(2)  It  began  the  evacuation  of  American  women 
and  children  from  the  danger  area. 

(3)  In  the  immediate  vicinity  of  Seoul,  the 
capital  of  Korea,  it  provided  the  necessary  mili- 
tary protection  to  keep  these  women  and  children 
from  being  killed  during  the  course  of  the  evac- 

It  was  not  until  10 :  30  p.m.  on  June  25,  after 
the  Security  Council  had  passed  its  resolution,  that 
the  first  orders  were  issued  by  the  President  of 
the  United  States  directing  that  assistance  should 
lie  given  to  the  Republic  of  Korea  in  pursuance  of 
the  Security  Council  resolution. 

During  the  next  day,  as  the  armed  forces  from 
North  Korea  advanced  southward,  the  United 
States  continued  to  carry  out  the  resolution  of 
June  25  by  increasing  its  aid  to  the  Korean 

'\\1ien  the  Security  Council  met  again  two  days 
later,  on  June  27th,  and  made  more  specific  its  ap- 
peal for  help  to  the  Republic  of  Korea,  the  Presi- 
dent of  the  United  States  ordered  an  intensifica- 
tion of  our  help.  The  free  world  greeted  these 
actions  with  enthusiastic  approval  and  forty-six 
members  of  the  United  Nations  have  already  sig- 
nified to  the  headquarters  of  the  United  Nations 
their  approval  and  support  of  the  Security  Coun- 
cil resolution.  The  armed  forces  of  six  members, 
in  addition  to  those  of  the  United  States,  are  either 
already  participating  in  giving  help  to  the  Repub- 
lic of  Korea  or  have  announced  that  these  forces 
are  being  made  available.  Other  members  have 
offered  other  types  of  material  assistance.  Here 
indeed  is  collective  security  in  action. 

Before  going  back  to  consider  these  matters  in 
more  detail  let  us  summarize  these  essential  points 
which  the  record  proves. 

(1)  The  Communist  forces  in  North  Korea  at- 
tacked without  warning  and  without  provocation. 
They  started  it.  That  is  what  the  Prime  Minister 
of  India,  Pandit  Nehru,  calls  the  "Major  fact  of 
well-planned  invasion  and  aggression  of  South 

(2)  The  Security  Council  as  the  authorized  rep- 
resentative of  the  world's  organization  responsible 
for  the  maintenance  of  international  peace  and  se- 
curity has  found  that  these  are  the  facts  which 
were  established  by  the  report  of  its  own  United 
Nations  Commission  on  the  spot. 

( 3 )  The  United  States  acted  promptly  as  a  loyal 
member  of  the  United  Nations  and  everything 
which  it  has  done  has  been  in  support  of  the  action 
of  the  United  Nations  in  the  effort  to  stop  the 
Communist  armed  attack  and  to  restore  peace  in 
the  area. 

Let  us  now  go  back  to  consider  some  of  these 
items  in  more  detail.  Let  us  first  look  at  the  Com- 
munist propaganda  line  which  says  in  effect  that 
the  United  Nations  has  no  right  to  keep  the  peace 
when  it  is  Communist  imperialists  who  have  com- 
mitted a  breach  of  the  peace. 

Answer  to  Soviet  Illegality  Charge 

The  Soviet  Union  argues  that  the  Security 
Council  is  without  power  to  act  if  their  represent- 
ative violates  his  Charter  obligation  to  participate 
in  its  meetings. 

It  is  necessary  first  to  recall  that  article  24  of 
the  Charter  says  that  the  members  of  the  United 
Nations  confer  on  the  Security  Council  "primary 
responsibility   for   the   maintenance   of  interna- 

Ju//    17,   7950 


tional  peace  and  security".  In  the  next  place 
article  28  of  the  Charter  says  that — 

The  Security  Couucil  shall  be  so  organized  as  to  be  able 
to  function  continuously.  Rach  member  of  the  Security 
Council  shall  for  this  purpose  be  represented  at  all  times 
at  the  seat  of  the  Organization. 

This  is  the  language  of  the  Charter.  It  is  per- 
fectly clear  that  a  state  which  is  a  member  of  the 
Security  Council  is  obligated  to  be  in  a  position 
at  all  times  to  take  part  in  its  work.  This  provi- 
sion would  have  no  meaning  if  in  spite  of  having 
a  representative  at  the  seat  of  the  organization 
the  representative  should  have  a  right  to  refuse  to 
attend  the  meetings.  The  Soviet  Union  has  thus 
violated  its  obligations  under  the  Charter  by  re- 
sorting to  the  tactics  of  "walking  out." 

Disregarding  this  question,  the  Soviet  Union 
argues  that  it  nevertheless  has  the  power  to 
cripple  the  functioning  of  the  Security  Council 
because  article  27  of  tlie  Charter  says  that  deci- 
sions of  the  Security  Council  on  substantive 
matters — 

.  .  .  shall  be  made  by  an  affirmative  vote  of  seven 
members  including  the  concurring  votes  of  the  permanent 

Since  the  Soviet  Union  is  a  permanent  member, 
it  is  argued  that  the  absence  of  their  concurring 
vote  invalidates  the  action  of  the  Council. 

The  history  of  the  drafting  of  this  article  and 
of  its  application  in  practice  leads  to  quite  a  differ- 
ent conclusion.  The  provision  which  I  have  just 
cited  from  article  27  about  the  concurring  votes 
of  the  permanent  members  iSj  of  course,  the  legal 
language  describing  the  decision  at  the  San  Fran- 
cisco conference  to  give  the  permanent  members 
a  veto  on  substantive  questions.  The  Charter  is 
a  constitutional  document  and  like  all  constitu- 
tions, including  that  of  the  United  States,  the 
exact  meaning  of  its  words  is  developed  by 


One  of  the  practices  in  the  Security  Council 
which  has  developed  over  the  years  is  the  prac- 
tice of  abstaining  from  voting  on  questions  which 
are  put  to  the  vote.  The  Soviet  Union,  begin- 
ning in  April  1948,  abstained  in  four  instances 
on  Security  Council  resohitions  dealing  with 
Palestine.^  Beginning  in  January  1948,  the  So- 
viet Union  abstained  on  four  resolutions  dealing 
with  the  Kashmir  case.  Beginning  in  December 
1948,  the  Soviet  Union  abstained  on  two  resolu- 
tions in  the  Indonesian  case.  In  none  of  these 
ten  cases  has  the  Soviet  Union  challenged  the  le- 
gality of  the  action  taken  by  the  Security  Council. 
Furthermore,  tlie  Soviet  Union  has  never  ques- 
tioned the  legality  of  action  taken  by  the  Security 
Council  in  which  it  voted  with  the  majority  but 

'  See  BtTLLETiN  of  July  10, 1950,  p.  48. 

on  which  other  permanent  members  of  the  Coun- 
cil abstained.  This  has  occurred  in  at  least  three 
instances.  We  thus  already  have  over  a  dozen 
cases  in  which  it  has  been  established  that  the 
meaning  of  article  27  of  the  Charter  is  that,  while 
the  negative  vote  of  a  permanent  member  can  de- 
feat the  substantive  resolution,  the  failure  of  a 
permanent  member  to  vote  for  a  resolution  does 
not  defeat  it. 

Clearly  it  can  make  no  difference  in  terms  of 
the  application  of  the  Charter  on  this  point 
whether  the  representative  of  a  permanent  mem- 
ber sits  at  the  table  and  abstains  or  whether  he 
fails  to  come  at  all.  The  essential  difference  re- 
lates to  tlie  question  of  a  member's  sense  of  re- 
sponsibility and  willingness  to  discharge  its  obli- 
gations under  the  Charter.  The  Soviet  Union 
had  the  legal  power  to  attend  the  meeting  of  the 
Security  Council  and,  by  taking  the  responsibility 
before  the  world,  to  cast  a  veto  to  block  Security 
Council  action.  The  U.S.S.R.  did  not  have  the 
power  to  block  action  by  staying  away  from  the 
meeting  in  violation  of  its  obligations  under  ar- 
ticle 28. 

The  consideration  of  this  part  of  the  Soviet 
Union's  argument  would  not  be  complete  without, 
mention  of  the  excuse  which  the  Soviet  Govern- 
ment has  given  for  its  recent  refusal  to  cooperate 
with  the  United  Nations.  The  excuse  is  that  a 
majority  of  the  members  have  not  accepted  the 
Soviet  view  that  the  representative  of  the  Chinese 
Communists  should  be  seated  as  the  representative 
of  China.  The  position  of  the  United  States  on 
this  point  has  been  frequently  stated.  Our  po- 
sition is  that  we  are  always  ready  to  abide  by  the 
decision  which  is  made  by  any  one  of  the  organs 
of  the  United  Nations  in  accordance  with  the  es- 
tablished procedures  of  that  organ.  We  have 
never  taken  the  position  that  we  will  disregard 
decisions  merely  because  we  do  not  agree  with 
them.  We  have  made  it  very  clear  that  we  do  not 
believe  that  this  question  of  deciding  what  repre- 
sentative is  entitled  to  sit  for  his  government  is 
subject  to  the  veto.  We  believe  that  under  es- 
tablished rules  this  is  a  procedural  question  to 
which  the  veto  does  not  apply. 

It  is  also  necessary  to  recall  that  the  Soviet 
tactics  of  resorting  to  a  walk-out  in  the  United 
Nations  has  not  been  confined  to  the  pretext  of 
the  issue  of  Chinese  Communist  representation. 
Mr.  Gromyko  resorted  to  the  same  tactics  in  the 
case  of  Iran  in  1946;  the  trick  was  unsuccessful 
then  as  now.  If  the  question  is  asked  whether 
China  was  represented  at  the  meetings  of  the  Se- 
curity Council  on  June  25th  and  27th,  the  answer 
is  clearly  yes.  The  Security  Council  had  consid- 
ered the  claim  of  the  Soviet  Union  that  the  Chinese 
Government  was  not  entitled  to  represent  China, 
and  it  rejected  this  claim.  Until  this  decision  is 
changed  by  a  duly  authorized  organ  of  the  United 
Nations,  it  obviously  stands  as  the  decision  which 
the  members  are  bound  to  follow. 


Department  of  State  Bulletin 

U.S.  vs.  U.S.S.R.  Policy  Toward  Asia 

It  is  a  familiar  pattern  of  international  Com- 
munist propaganda  that  they  loudly  accuse  others 
of  the  sins  which  they  themselves  have  committed. 
It  is  therefore  not  surprising  that  they  accuse  the 
United  States  of  imperialism  in  Asia,  because  the 
Russian  imperialistic  design  is  the  same  in  Asia 
today  as  it  was  under  the  Czai's.  The  Soviet  en- 
croachments upon  Chinese  sovei"eignty  in  Man- 
churia, Mongolia,  Sinkiang,  and  elsewhere  have 
frequently  been  pointed  out.  The  Soviet  Union 
and  its  satellites  were  the  only  members  of  the 
United  Nations  which  refused  during  the  last  Gen- 
eral Assembly  to  join  in  approving  a  resolution 
reasserting  the  historic  American  doctrine  of 
respect  for  tlie  integrity  of  China. 

The  experience  of  so-called  Communist  "libera- 
tion" of  strongly  nationalist  states  like  Poland, 
Czechoslovakia,  Latvia,  Lithuania  and  Estonia 
holds  out  the  gloomiest  prospects  for  the  peoples 
of  Asia.  During  the  period  of  this  type  of  Soviet 
"liberation,"'  what  has  been  the  record  of  the 
Western  world?  The  Philippines  and  Burma 
have  become  separate  independent  states.  India, 
Pakistan  and  Ceylon  have  become  independent 
states,  members  of  the  Commonwealth.  Indonesia 
has  also  become  independent  and  a  member  of  the 
Netherlands-Indonesian  Union.  Cambodia,  Laos, 
and  Vietnam  have  become  independent  members 
of  the  French  Union.  Once  again,  the  record  is 
the  proof  to  which  we  turn.  The  Communist 
propaganda  cannot  wipe  out  the  facts. 

The  Ignited  States  has  steadily  supported  the 
development  of  independent  nationalism  through- 
out Asia.  We  supported  the  cause  of  Indonesia 
in  the  United  Nations  Security  Council  when  the 
Communist  international  movement  was  denounc- 
ing the  Indonesian  patriotic  leaders,  Sukarno  and 
Hatta  as  "traitors."  It  was  the  United  States 
which  took  the  case  of  Korea  to  the  United  Na- 
tions and  sought  United  Nations  guaranties  for 
Korean  independence.  It  was  the  Soviet  Union 
which  by  walkout  and  noncooperation  blocked  the 
union  of  the  country  which  all  real  Korean  patriots 

The  objective  and  purpose  of  the  United  States 
in  Korea  today  is  to  support  the  United  Nations 
effort  to  restore  and  maintain  peace.  We  are  help- 
ing to  carry  out  Security  Coimcil  resolutions  which 
call  for  a  cease-fire,  the  withdrawal  of  the  North 
Koreans  to  the  SSth  parallel,  and  for  the  restora- 
tion of  international  peace  and  security  in  the 
area.  Thereafter,  we  shall  continue  our  policy 
of  supporting  the  United  Nations  in  its  efforts  to 
secure  a  permanent  adjustment  of  the  situation 
in  Korea  in  the  interest  of  the  Korean  people.  We 
have  no  other  or  separate  interest  of  our  own. 

Other  Attaclts  To  Be  Defeated 

It  is  always  true  that  at  times  when  thought  and 
action  are  concentrated  upon  meeting  an  emer- 

gency a  conscious  effort  is  required  to  keep  in 
mind  the  importance  of  moving  forward  with 
long-range  plans.  The  present  situation  in  Korea 
requires  and  is  receiving  the  concentrated  atten- 
tion of  the  Government  of  the  United  States.  But, 
at  the  same  time,  we  must  go  forward  with  many 
other  plans  and  policies.  It  should  be  particularly 
emphasized  that  this  great  demonstration  of  com- 
bined action  under  the  United  Nations  cannot  be 
allowed  to  slacken  the  efforts  of  this  world  organi- 
zation to  grapple  with  the  fundamental  problems 
affecting  the  peace  and  welfare  of  mankind.  One 
of  the  most  important  of  the  long-range  efforts  of 
the  United  Nations  is  the  program  of  technical 
assistance  which  is  allied  to  our  own  Point  4  Pro- 
gram. Sudden  aggressive  armed  attacks  on 
peaceful,  independent  states  must  be  met  and  rolled 
back,  but  the  peace  and  welfare  of  mankind  are 
always  under  attack  by  poverty  and  disease.  Our 
resources  are  adequate  to  cooperate  in  this  peren- 
nial struggle  at  the  same  time  that  we  are  meeting 
the  emergency  of  the  moment.  We  have  demon- 
strated to  the  world  our  will  and  our  ability  to 
meet  the  emergenc_y;  surely  we  will  not  fail 
through  support  of  the  Point  4  Program  to  do  our 
full  part  in  the  longer  campaign. 

Charging  South  Korea  as  Aggressor 
Reminiscent  of  Nazi  Tactics 

Statement  hy  Secretary  Acheson 

[Released  to  the  press  July  5] 

In  regard  to  the  Korean  hostilities,  four  sunple 
points  must  be  recognized  and  long-remembered 
by  all  the  world.  The  people  of  this  free  nation 
have  clearly  shown  that  they  know  the  truth  and 
are  not  going  to  be  misled  by  false  versions  of  it. 
These  are  the  facts: 

1.  The  present  troubles  in  Korea  started  not 
when  the  United  Nations  Security  Council  acted 
or  when  the  United  States  and  others  acted  in 
support  of  the  Security  Council.  It  all  started  at 
dawn  on  Sunday,  June  25,  Korean  time. 

2.  At  that  time,  troops  from  North  Korea,  with- 
out any  provocation  whatever,  crossed  the  38th 
parallel  and  launched  an  aggressive  attack  against 
the  Republic  of  Korea.  All  the  reliable  witnesses, 
on  the  scene,  at  the  time,  including  the  United 
Nations  Commission,  have  established  that  the 
North  Korean  forces  were  the  aggi'essors. 

3.  The  Security  Council  of  the  United  Na- 
tions acted  in  support  of  tlie  Republic  of  Korea 
only  after  it  was  satisfied  that  this  was  a  case  of 
utterly  unprovoked  aggression. 

4.  Any  contention  that  hostilities  were  started  by 
the  Republic  of  Korea  is  clearly  in  the  category  of 
the  Nazi  claims  of  1939  that  Poland  started  hos- 
tilities by  attacking  Nazi  Germany. 

July   17,   1950 


U.S.  Military  Actions  in  Korea 

Addresses  iy  John  Foster  Dulles 
Consultant  to  the  Secretary 


The  Korean  affair  obviously  brings  us  nearer 
to  the  day  of  fateful  decision.  Also,  it  makes  it 
more  probable  that  we  will  make  the  kind  of 
effort  needed  to  fend  off  the  utter  disaster  of  war. 

The  danger  of  war  has  lain  largely  in  our  past 
failure  to  see  clearly  and  respond  adequately  to 
the  peril  that  stems  from  Soviet  communism. 
That  slowness  is  probably  inevitable  in  a  democ- 
racy when  national  policy  depends  on  public 
opinion.  However,  even  now  it  is  not  too  late 
to  put  peace  onto  a  more  stable  basis  than  ever 

The  nature  of  the  Soviet  Communist  threat  has 
been  fully  set  out  by  Stalin  himself  in  his  Prob- 
lems of  Leninism.  The  latest  English  edition, 
printed  in  Moscow,  is  dated  1940.  Stalin  there 
outlines  the  program,  whereby,  Soviet  commu- 
nism expects  to  extend  its  system  throughout  the 
world  and  establish  its  "one  world"  of  state  so- 
cialism. The  plan  is  to  conquer  the  weaker  coun- 
tries, one  by  one,  by  methods  of  propaganda, 
penetration,  subversive  warfare,  and,  as  a  last 
resort,  open  war.  The  strongest  non-Communist 
countries,  notably  the  United  States,  will  be  left 
to  the  last  and,  gradually,  encircled  and  their 
economies  weakened  until,  finally,  they  are  sup- 
posed either  to  capitulate  voluntarily  or  be  over- 
thrown by  open  assault  which  the  Communist 
countries  will  presumably  then  have  the  power  to 
launch  successfully.  Stalin  points  out,  and  this 
dates  back  to  1925,  that  the  "road  to  victory" 
oyer  the  West  lies  through  "revolutionary  al- 
liance with  the  liberation  movement"  in  the  col- 
onies and  countries  of  the  East.  The  hostile  tide 
of  communism  in  Asia,  which  looms  so  danger- 

'An  address  made  at  Colgate  University  Conference  on 
American  Foreign  Policy,  Hamilton,  N.  Y.,  in  July  7  and 
released  to  the  press  on  the  same  date. 

ously  today,  has  been  announced  and  actively  nur- 
tured for  25  yeai-s. 

Stalin's  Strategy 

Stalin's  book,  which  is  the  present-day  Commu- 
nist bible,  except  in  Yugoslavia,  gives  us  the  same 
preview  that  Hitler  gave  in  Mein  Kamvf. 
There  is,  however,  an  important  distinction  be- 
tween the  Hitler  program  and  the  Stalin  pro- 
gram. Hitler  felt  that  his  whole  program  had  to 
be  achieved  in  short  order,  during  his  own  life- 
time. That  required  intensive  and  sustained  of- 
fensive action.  In  the  case  of  the  Communist 
program,  there  is  no  such  time  urgency.  It  is 
anticipated  that  full  realization  of  the  Commu- 
nist conquest  may  take  what  Stalin  refers  to  as 
"an  entire  historical  era."  And,  he  teaches,  that 
"tactics  of  retreat"  are  as  important  as  tactics  of 
attack.  Also,  he  teaches,  the  necessity  of  com- 
promise when,  as  he  puts  it,  this  is  necessary  "to 
buy  off  a  powerful  enemy  and  gain  a  respite." 

Therefore,  under  the  Connnunist  program,  war 
by  Russia  is  not  necessarily  inevitable  or  immi- 
nent if  we  are  powerful  enough  to  make  it  seem 
expedient  to  the  Soviet  Communist  leaders  to  use 
tactics  of  delay  or  compromise. 

U.S.  Awakens  to  Reality 

We  have  only  recently  begun  to  take  seriously 
Stalin's  world  program  for  comnumism,  long  an- 
nounced, superbly  implemented,  and  already  one- 
third  consummated.  Our  national  attitude  has 
only  gradually  moved  toward  realism.  There  has 
been  an  evolution  through  four  phases: 

1.  Cooperation. — That  was  the  war  phase. 
When  Hitler  made  the  Soviet  Union  and  the 
United  States  war  allies,  there  was  a  military  ne- 
cessity of  cooperation  that  made  it  expedient  to 
draw  a  veil  over  the  basically  hostile  attitude  of 
Soviet  communism  toward  the  United  States.    We 


Deparfment  of  Stale  Bulletin 

emphasized  the  courageous  fighting  qualities  of 
the  Russian  people,  and  we  ignored  the  basic  an- 
tipathy toward  us  of  the  Communist  leaders.  On 
the  theory  that  the  Soviet  Union  had  to  be  given 
inducements  to  prevent  her  making  a  separate 
peace  with  Germany  and  to  get  her  to  enter  into 
the  war  against  Japan,  we  agreed  to  go  along 
with  large  Soviet  postwar  expansion  in  both  cen- 
tral Europe  and  in  Asia. 

2.  Non€ooperation.—T\\&  second  phase  of  our 
policy  came  immediately  after  the  close  of  the 
fighting.  The  Soviet  Union  then  sought  to  secure 
continuing  support  from  the  United  States  for 
her  expansionist  policj'.  Her  leaders  argued  that 
postwar  cooperation  of  the  Soviet  Union  and  the 
United  States  was  necessary  in  order  to  assure 
world  peace  and  that  that  cooperation  neces- 
sitated the  United  States  acquiescing  in  the  ex- 
pansionist ambitions  of  the  Soviet  Union.  That 
■was  in  essence  the  Molotov  thesis  which  was  pre- 
sented at  the  first  Council  of  Foreign  Ministers 
meeting  at  London,  in  September  1945,  which  I  at- 
tended with  Secretary  Byrnes.  We  then  made  the 
momentous  decision  that  we  would  not  continue  in 
time  of  peace  the  Yalta  type  of  appeasement  which 
had  seemed  necessary  in  time  of  war. 

That  decision  taken  at  London,  in  the  fall  of 
1945,  did  not,  however,  immediately  make  itself 
felt  throughout  all  aspects  of  the  United  States 
foreign  policy.  Notably,  there  was  a  lag  in  bring- 
ing our  Eastern  policy  into  line  with  our  Western 
policy.  Many  Eastern  students  were  impressed  by 
the  abuses  and  deficiencies  of  existing  Eastern  gov- 
ernments and  felt  that  a  good  dose  of  Communist 
reform  might  be  healthy. 

3.  Prevention. — The  third  phase  of  American 
policy  was  marked  by  realization  that  there  was 
in  fact  an  irreconcilable  conflict  between  the  am- 
bitions of  Soviet  communism  and  the  interests  and 
welfare  of  the  United  States  and  that  we  needed 
to  assert  ourselves  positively  to  prevent  the  ex- 
tension of  Soviet  communism.  This  new  ap- 
proach came  out  of  the  1947  Moscow  and  London 
Conferences  of  the  Council  of  Foreign  Ministers 
which  I  attended  with  Secretary  Marshall.  Be- 
tween these  two  Council  meetings  came  the  Mar- 
shall Plan  proposal  (June  1947) .  We  then  clearly 
saw  that  we  were  threatened  by  a  so-called  "cold 
war,"  and  we  made  up  our  minds  to  make  positive 
efforts  to  strengthen  the  free  world  and  to  fill  up 
military,  economic,  and  moral  vacuums  into  which 
Soviet  communism  was  moving. 

Our  maximum  efforts  were  directed  to  Europe. 
But  there  was  also  a  change  of  policy  in  the  Far 
East,  as  indicated  by  the  fact  that  in  August  1948 
Secretary  Marshall  advised  our  Embassy  in  China 
that  "the  LTnited  States  Government  must  not 
directly  or  indirectly  give  any  implication  of 
support,  encouragement,  or  acceptability  of 
coalition  govermnent  in  China  with  Communist 

We  have,  however,  up  to  now,  assumed,  and 

that  was  a  fair  working  hypothesis,  that  com- 
nuniism  would  probably  limit  itself  to  "cold  war" 
tactics  and  that  there  would  not  be  open  military 
attack.  However,  some  preparations  were  made 
as  against  the  possibility  of  armed  attack,  notably 
in  Western  Europe.  We  made  the  North  At- 
lantic Treaty  and  adopted  the  Military  Assistance 

4.  Opposition. — The  fourth  phase  of  policy  is 
marked  by  the  North  Korean  attack  upon  South 
Korea  and  our  active  fighting  opposition  under 
the  direction  of  the  United  Nations.  The  Korean 
affair  shows  that  communism  cannot  be  checked 
merely  by  building  up  sound  domestic  economies. 
The  South  Korean  experiment  in  democracy  was 
as  hopeful  as  could  be  expected.  There  was  politi- 
cal, intellectual,  and  economic  freedom.  The  sec- 
ond national  election  had  just  been  held,  and  the 
majority  elected  were  independent  of  the  party 
in  power  which  controlled  the  police  force  and  the 
election  machinery.  The  fact  that  that  could  hap- 
pen is  good  evidence  of  political  freedom.  As 
recently  as  2  weeks  ago,  I  met  with  the  Korean 
National  Assembly,  with  leading  educators,  with 
religious  groups,  businessmen,  and  representa- 
tives of  labor.  I  conferred  with  our  mission,  and 
economic  advisers,  and  with  the  Korean  Commis- 
sion of  the  United  Nations.  All  the  evidence  was 
that  the  Republic  of  Korea  provided  a  wholesome, 
free  society  and  one  which  could  not  be  over- 
thrown by  subversive  efforts.  Such  efforts  had, 
indeed,  been  repeatedly  tried  and  had  failed.  The 
military  blow  from  the  north  dissipates  the  thesis 
that  internal  reform  and  well-being  is  itself  a 
sufficient  defense  against  Communist  aggression. 

Korea  Attack  Part  of  Communist  Plan 

The  armed  attack  that  occurred  shows  that, 
while  the  Soviet  Union  seems  not  at  the  moment 
prepared  to  engage  its  own  army,  nevertheless, 
international  communism  is  prepared  to  use,  in 
open  warfare,  the  armed  forces  of  puppet  and 
satellite  Communist  states  which  are  equipped 
with  armament  of  Russian  manufacture. 

It  was  realized  for  some  time  that  the  Republic 
of  Korea  was  in  danger  of  attack  from  the  north. 
Proof  of  that  is  found  in  the  fact  that  the  United 
Nations  continued  its  Korean  Commission  after 
the  government  of  the  Republic  had  been  set  up 
under  United  Nations  supervision,  and  in  the  fall 
of  1949,  the  General  Assembly  added  to  the  func- 
tions of  the  Commission  the  task  of  maintaining 
military  observation  along  the  northern  frontier. 

When,  I,  myself,  went  to  the  Far  East,  on  June 
14th,  it  was  primarily  to  look  into  the  possibilities 
of  the  Japanese  peace  treaty.  But  I  went  first  to 
Korea  to  acquaint  myself  personally  with  a  situa- 
tion which,  for  several  years,  I  had  dealt  with 
as  a  United  States  delegate  to  the  United  Nations. 
I  was  concerned  about  the  increasing  insistence 
by  the  North  Korean  Communist  regime  that  it 
must  rule  all  of  Korea  and  the  intensive  Com- 

Jo/y   17,   7950 


munist  propaganda  in  South  Korea  that  it  had 
better  succumb  to  communism  without  resistance, 
because  neither  tlie  United  Nations  nor  the  United 
States  would  give  protection  if  the  Republic 
should  be  attacked. 

Before  leaving  Washington,  I  drafted  a  speech 
to  be  made  in  Korea.  In  it  I  said  that  if  the 
Republic  of  Korea  were  attacked,  it  could  expect 
support  from  the  United  Nations.  I  pointed  out 
that  the  United  Nations  Charter  required  all  na- 
tions "to  refrain  from  any  threat  or  use  of  force 
against  your  territorial  integrity  or  political  in- 
dependence" and,  I  added,  that  the  United  States 
stood  behind  the  United  Nations.  I  concluded 
with  these  words: 

You  are  not  alone.  You  will  never  be  alone  so  long 
as  you  continue  to  play  worthily  your  part  in  the  great 
design  of  human  freedom. 

That  address  was  made  on  June  19th  at  the 
opening  of  the  Second  National  Assembly.  It 
was  broadcast  in  the  Korean  language,  through- 
out Korea,  and  Korean  language  leaflet  copies 
were  widely  distributed.  Nevertheless,  6  days 
later  the  North  Korean  army  struck,  in  a  long- 
prepared  and  fully  implemented  effort.  There 
were  ample  supplies  of  Russian-made  planes, 
tanks,  and  heavy  artillery.  The  Republic's  army 
fought  bravely  iDut  hopelessly.  It  had  no  combat 
planes,  no  tanks,  and  no  artillery  heavy  enough  to 
stop  the  invading  tanks.  Unopposed  enemy 
planes  flew  low,  strafing  the  civilian  population, 
setting  fire  to  gasoline  supplies,  and  spreading 
terror  throughout  the  capital  area.  In  3  days, 
Seoul,  30  miles  south  of  the  northern  border,  was 
captured,  and  the  tank  formations  moved  on  to 
the  south. 

New  Phase  in  American  Foreign  Policy 

This  open  military  attack  and  United  Nations 
resistance  to  it  opens  a  new  phase  in  American 
foreign  policy.  It  will,  I  hope  and  believe,  arouse 
us  to  a  greater  effort  than  any  we  have  yet  made 
to  fend  off  the  danger  of  war.  It  may  require 
us  to  devote  a  greater  percentage  of  our  vast  eco- 
nomic productivity  to  military  production  so  that 
other  free  nations  will  not  be  exposed  to  being 
overrun  by  Communist  satellite  forces  equipped 
with  armament  furnished  by  Russia. 

What  has  happened  to  the  Republic  of  Korea 
shows,  I  fear,  that  the  communistic  assaults  can- 
not be  prevented  merely  by  economic  aid  or  merely 
by  developing  good  societies.  The  open  military 
assault  on  the  Republic  of  Korea  occurred  be- 
cause the  Republic  of  Korea  was  too  good  a  so- 
ciety to  be  tolerated  on  the  otherwise  Communist- 
dominated  mainland  of  north  Asia,  and  because 
it  was  so  good  that  it  could  not  be  overthrown 
from  within  by  indirect  aggression.  Dii-ect  ag- 
gression was  the  only  way  to  blot  out  this  moral 
salient  on  the  Communist  mainland. 

There  are  probably  two  further  reasons  for  the 
attack.    One  was  that  if  it  succeeded  it  would 


envelop  Japan  both  from  the  north,  where  the 
Russians  now  have  already  gained  hold  of  all  of 
Sakhalin  Island  and  the  Kurile  Islands,  and  from 
the  south,  where  Korea  is  only  separated  by  a 
narrow  strait  from  the  south  of  Japan.  There 
was  doubtless  a  desire  to  throw  a  roadblock  in 
the  way  of  the  positive  program  of  the  United 
States  for  putting  Japan  onto  a  peaceful  and  self- 
governing  basis,  as  part  of  the  free  world. 

Furthermore,  the  Communists  doubtless  calcu- 
lated that  if  the  attack  failed  through  the  use  of 
United  States  force  to  repel  the  attack,  the  process 
would  bog  down  the  West  in  the  mire  of  anti- 
colonialism  in  Asia. 

As  we  have  seen,  Stalin  long  ago  calculated  that 
the  best  way  to  conquer  the  West  was  to  involve 
it  in  fighting  the  anticolonial  aspirations  of  Asia 
and  the  Pacific.  The  colonial  powers,  including 
the  United  States  in  the  Philippines,  Britain  in 
India,  Burma,  and  Ceylon,  and  the  Dutch  in  In- 
donesia, by  wise  statesmanship,  extricated  them- 
selves largely  from  this  trap.  No  doubt  the  Korean 
venture  is  designed  in  part  to  draw  the  Western 
world  back  into  that  trap.  That  is  a  danger  that 
has  to  be  carefully  avoided  by  relating  our  conduct 
to  the  policies  of  the  United  Nations  which,  as  an 
organization,  is  strongly  dedicated  to  self-gov- 
ernment and  independence  for  the  non-self-gov- 
erning peoples  of  the  world. 

Prospects  for  Peace 

The  situation  is  certainly  fraught  with  danger. 

However,  if  the  members  of  the  United  Nations 
support  and  make  good  the  Security  Council  de- 
cision to  repel  and  throw  back  the  unprovoked 
military  aggression  in  Korea;  if  the  defensive 
military  position  around  the  periphery  of  Soviet 
control  is  strengthened,  so  that  satellite  forces  can- 
not easily  break  through  with  violence ;  if  the  colo- 
nial powers  support  the  newly  born  nations  and 
avoid  general  entanglement  with  the  legitimate  in- 
dependence aspirations  of  the  Asiatic  peoples; 
then  there  will  be  a  condition  where  peace  is 
likely,  unless  the  Soviet  Union  itself  connnits  its 
total  might  to  total  war.  It  may  not  be  prepared 
to  do  this  because  of  its  relative  economic  weak- 

Speaking  in  Tokyo  on  June  22,  1950,  I  pointed 
out  that,  in  terms  of  key  commodities  such  as 
steel,  aluminum,  electric  power,  and  crude  oil,  the 
United  States  had  an  advantage  over  the  Soviet 
Union  of  anywhere  from  five  or  ten  to  one.  I 
concluded  "Any  struggle  that  openly  pitted  the 
full  might  of  the  free  world  against  that  of  the 
captive  world  could  have  but  one  outcome.  That 
would  be  the  total  demolition  of  the  artificial, 
rigid,  and  relatively  weak  structure  that  Soviet 
communism  has  built."  I  believe  that  that  is  a 
correct  analysis  of  the  present  situation.  I  do 
believe,  however,  that  it  will  be  necessary  for  us 
to  convert  more  of  our  economic  potential  into 
present  strength  in  order  that  the  free  nations  who 

Department  of  State   Bulletin 

are  menaced  by  Communist  military  attack  can 
be  better  protected. 

In  the  case  of  Korea,  it  was  felt  necessary  to 
give  a  very  low  priority  to  the  military  position 
of  the  Republic  of  Korea  because  of  the  great 
shortage  of  available  military  equipment.  Con- 
gress had  appropriated  funds  to  extend  the  Mili- 
tary Assistance  Program  to  Korea.  However,  it 
had  not  yet  been  found  possible  to  convert  that 
appropriation  into  a  reality.  When  I  was  there, 
the  Korean  defense  establishment  pointed  out 
that  while  the  morale  and  discipline  of  the  Re- 
public's army  was  first  class,  they  could  not 
be  expected  to  hold  for  long  without  a  single  com- 
bat plane,  without  any  tanks,  without  antiaircraft 
guns,  and  without  artillery  sufficient  to  stop  the 
known  concentrations  of  enemy  tanks  on  the 

We  are  now  having  to  make  good  that  deficiency 
in  a  costly  way. 

What  has  happened  in  Korea  will,  I  think, 
bring  home  to  the  American  people  the  need  of 
adequate  measures  to  strengthen  the  free  world 
as  against  the  possibility  of  sudden,  armed  attack. 
If  we  do  that,  we  can  close  the  most  dangerous 
remaining  loophole  for  war. 

If  we  have  strength ;  if  we  and  the  other  mem- 
bers of  the  free  worlcl  put  that  strength  at  the 
disposition  of  the  United  Nations ;  if  the  United 
Nations  continues  to  show  a  capacity  for  decisive 
action,  that  will  check  the  likelihood  of  a  series 
of  little  wars  which  could  develop  into  a  big  war. 

Relations  between  the  free  world  and  the  Com- 
munist world  are  no  doubt  in  a  dangerous  phase. 
It  is  a  period  of  testing.  Out  of  it  could  come 
great  disaster.  Equally,  the  test  could  supply 
proof  that  peace  has  been  established  on  a  basis 
sounder  than  ever  before  in  history. 


The  Declaration  of  Independence  is  expressed 
not  in  terms  of  American  rights  but  in  terms  of 
the  natural  moral  rights  of  all  men.  It  proceeds 
from  the  promise  that  all  men  "are  endowed  by 
their  Creator  with  certain  inalienable  Rights,"  and 
the  Founding  Fathers  made  it  clear  that  they  were 
setting  a  pattern  of  freedom  for  men  everywhere. 

Largely  under  the  inspiration  of  that  example, 
the  nineteenth  century  became  a  great  period  of 
liberalism,  when  human  beings  freed  themselves 
from  the  yoke  of  despotism.  Wherever  they 
sought  to  do  so,  they  had  the  support  of  the  United 

We  early  established  the  Monroe  Doctrine,  to 
warn  Czarist  Russia  and  its  allies  to  keep  their 
hands  off  the  republics  of  this  hemisphere  whose 

'  In  an  address  made  at  the  Sesquicentennial  Fourth  of 
July  Celebration,  at  Washington,  D.C.,  and  released  to 
the  press  on  the  same  date. 

July   17,   1950 

continuing  independence,  we  said,  was  vital  to  our 
own  peace  and  happiness.  Toward  the  end  of  the 
nineteenth  century,  we  enunciated  the  "Open 
Door"  policy  for  China,  to  help  the  Chinese  people 
develop  in  their  own  way,  free  of  alien  domination. 
In  this  twentieth  century,  we  have  joined  in  two 
world  wars  when  the  freedom  of  the  West  was  im- 
periled by  military  despotism.  Five  years  ago, 
we  signed  the  United  Nations  Charter  and, 
thereby,  pledged  ourselves  to  seek  universal  re- 
spect for  human  rights,  and  fundamental  free- 
doms, and  the  preservation  of  political  independ- 
ence as  against  violent  attack. 

U.S.  Tradition — Support  of  Human  Freedom 

The  history  of  our  Nation  makes  a  consistent, 
unfolding  pattern.  We  have  supported  human 
freedom  and  political  independence  throughout 
the  world,  both  as  a  matter  of  good  morals  and 
because  we  saw  that  our  own  freedom  was  an  inte- 
gral part  of  total  human  freedom. 

The  United  States  can  never  be  isolationist,  and 
it  never  will  be  so  long  as  we  are  true  to  our  herit- 
age. An  isolationist  America  would  be  a  contra- 
diction in  terms,  for  America  has  from  the  be- 
ginning been  a  symbol  of  the  universal  cause  of 
human  liberty.  Wltat  we  are  doing  today  is  in 
keeping  with  the  tradition  of  our  past. 

I  was  in  Korea  only  2  weeks  ago  and  saw  with 
my  own  eyes  that  that  Republic  was  a  land  of 
freedom.  The  people  had  just  had  their  second 
general  election.  Eighty  percent  of  the  eligible 
voters  had  gone  to  the  polls.  A  majority  of  the 
representatives  elected  were  independent  of  the 
party  which  controlled  the  election  machinery  and 
the  police  force.  That  is  proof  of  real  political 

I  talked  with  leading  educators  and  attended 
a  gathering  of  professors  and  students  at  one  of 
their  leading  universities.  I  spent  an  evening  of 
religious  worship  with  3,000  Christian  refugees 
who  had  fled  from  the  northern  dictatorship  of 
atheistic  communism  so  as  to  enjoy  the  religious 
and  intellectual  liberty  of  the  Republic  of  Korea. 
There  was  no  doubt  as  to  the  reality  of  that  liberty. 
The  people  were  happy  and  industrious  and  using 
energetically  and  cooperatively  their  new-found 

The  society  was  so  wholesome  that  it  could  not 
be  overthrown  from  within.  That  had  been  tried 
and  failed.  So  early  Sunday  morning,  9  days 
ago,  open  aggression  was  brought  into  play. 
Without  warning,  heavy  tank  formations  drove 
down  from  the  north,  moving  through  the  valleys 
to  converge  first  upon  the  capital  of  Seoul,  then  to 
fan  out  to  the  south.  They  were  preceded  and 
covered  by  combat  planes  which,  swooping  low, 
machine-gunned  and  terrorized  the  civilian  popu- 
lation. The  forces  of  the  Republic  had  no  combat 
planes,  tanks,  or  heavy  artillery  with  which  to 
oppose  them. 


Korean  Attack— Military  Despotism 

Tlie  long-prepared,  suddenly  exploded,  ruthless 
attack  was  characteristic  of  military  despotism. 
It  was,  in  miniature,  the  kind  of  attack  that  could 
hit  us  if  we  are  content  to  live  in  a  world  where 
such  methods  are  tolerated.  The  struggle  in  Ko- 
rea represents  the  timeless  issue  of  whether  lovere 
of  liberty  will  be  vigilant  enough,  brave  enough, 
and  united  enough  to  survive  despotism. 

The  United  States,  as  a  member  of  the  United 
Nations,  had  helped  to  create  the  Korean  Kepublic. 
We  had  given  it  economic  aid.  We  alone  of  the 
free  world  had  military  strength  in  the  immediate 
area.  We  were  the  logical  first  defenders  of  the 
liberty  that  had  been  assaulted. 

It  was,  however,  important  that  we  should  not 
act  alone  or  without  international  sanction.  The 
United  Nations  had  been  established  for  the  very 
purpose  of  dealing  with  such  situations.  Its  Se- 
curity Council  met  within  a  few  hours  of  the  open- 
ing of  the  assault.  All  of  the  members  were 
present,  except  the  Soviet  Union,  which  sought  by 
absence  to  veto  restraint  on  the  aggressive  action 
of  its  satellite  in  North  Korea.  The  Council, 
nevertheless,  acted.  It  had  a  direct  report  from 
its  own  Commission  in  Korea  and,  in  the  light  of 
that  report,  unhesitatingly,  branded  the  attack  as 
a  breach  of  the  peace.  It  called  upon  the  member 
states  to  assist  in  repelling  it. 

President  Truman,  with  bipartisan  support, 
acted  promptly  and  vigorously  to  bring  the  United 
States  to  respond  to  that  appeal.  The  Govern- 
ments of  many  other  members  of  the  United  Na- 
tions did  likewise. 

Thus,  we  see  international  authority  at  work  to 
prevent  the  committing,  against  the  Republic  of 
Korea,  of  what  I  call  "international  murder." 

The  task  undertaken  is  not  a  light  one  and  be- 
fore it  is  finished  we  shall  all  of  us  have  to  pay  a 
price.  Already,  today,  in  Korea,  our  youth  are 
beginning  to  pay  the  final  price  of  life  itself.  The 
rest  of  us  may  have  to  cut  down  on  our  economic 
indulgence  so  that,  out  of  our  great  productive 
capacity,  we  can  help  our  friends  to  match  the  of- 
fensive power  which  the  Soviet  Union,  out  of  its 
economic  poverty,  supplies  to  its  friends. 

Threat  to  Liberty 

I  am  confident  that  what  has  happened  in  Korea 
will  arouse  the  American  people.  We  have  never 
flinched  when  a  great  principle  was  involved.  We 
are  engaged,  toclay,  in  the  same  battle  which  was 
begun  in  1776.  Our  own  liberty  cannot  long  be 
safe  in  a  world  where  despots  can  strike  down  lib- 
erty, piecemeal,  with  fire  and  sword. 

We  have,  today,  the  great  opportunity  to  join 
with  the  other  fi-ee  societies  to  prove  that  unpro- 
voked aggression  does  not  pay.  If  we  sternly 
teach  that  lesson  in  terms  of  the  North  Korean 
adventure,  then  our  own  peace  will  be  more  secure 
than  ever  before.    But  if  the  free  world  fails  to 

rally  to  the  support  of  one  of  its  stricken  members, 
then  one  by  one  others  would  be  struck  down  and 
military  despotism,  intoxicated  by  repeated  vic- 
tories, would  lose  all  sense  of  restraint. 

The  United  States  has  been  ever  bound,  by  faith 
and  by  sacrifice,  to  the  cause  of  righteousness. 
Washington,  under  the  shadow  of  whose  monu- 
ment we  stand,  committed  our  Nation  in  its  youth- 
ful dedication.  Lincoln,  whose  shrine  adjoins, 
said  that  our  Declaration  of  Independence  en- 
visioned liberty  "not  alone  to  the  people  of  this 
country  but  hojje  for  the  world  for  all  future  time." 
We  have  never  sat  idly  by  when  despots  attempted 
by  violence  to  snuff  out  that  hope.  Today,  we  face 
a  new  test.  I  am  confident  that  our  response  will 
be  worthy  of  our  great  heritage  and  that  we  shall 
not  be  afraid  to  live  sacrificially  and  even  danger- 
ously in  a  righteous  cause. 

U.N.  Commission  Reestablishes 
Headquarters  in  Korea 

[Released  to  the  press  by  the 

U.  N.  Department  of  Public  Information  July  1] 

The  United  Nations  Commission  in  Korea  on 
July  1  adopted,  in  Tokyo,  the  following  resolution : 

Whekeas  information  has  been  received  from  the  Com- 
mission's advance  party,  including  the  Chairman  and  the 
Rapporteur,  at  present  in  Pusan  (ITusan),  Southern  Ko- 
rea, that  satisfactory  arrangements  have  now  been  made 
for  the  return  of  the  Commission  to  the  Republic  of  Korea. 

Recalijng  the  Commission's  decision  of  27  .June  1950 
to  ti'ansfer  its  headquarters  temporarily  from  Seoul  and 
to  hold  itself  ready  to  return  to  Korea  immediately  sub- 
ject to  developments, 

Decides  to  reestablish  its  seat  forthwith  in  the  Republic 
of  Korea,  and 

Whereas  facilities  at  present  available  in  the  Republic 
of  Korea  are  limited,  the  Commission  further  decides  to 
constitute  the  members  of  the  Commission  at  present  in 
Tokyo  as  an  Ad  Hoc  Committee  for  the  purpose  of  en- 
abling the  Commission  in  the  Republic  of  Korea  to  keep 
in  close  touch  with  international  developments  and  in 
particular  with  the  Security  Council. 

The  Commission  members,  at  present  in  Pusan, 
Southern  Korea,  who,  in  accordance  with  this  res- 
olution now  constitute  the  United  Nations  Com- 
mission on  Korea,  are :  the  Commission  Chairman 
Dr.  Yu-wan  Liu  (China),  Henri  Brionval 
(France),  A.  B.  Jameison  (Australia),  who  is  the 
rapjDorteur  of  the  Commission  and  C.  Kondapi, 
deputy  representative  of  India.  The  represent- 
atives of  the  remaining  three  member  states  of  the 
Commission — El  Salvador,  Philippines  and  Tur- 
key— will  remain  in  Tokyo  to  constitute  the  Ad 
Hoc  Committee. 

Col.  Alfred  G.  Katzin,  personal  representative 
of  Secretary-General  Lie  in  Korea,  arrived  in  that 
country  on  July  7 ;  and,  on  July  8,  he  presented  his 
credentials  from  the  Secretary-General  to  the 
Korean  Government. 


Department  of  State   Bulletin 

Point  Four:  An  Investment  in  Peace 

Address  iy  the  President  ^ 

It  is  hard  for  us  to  realize  just  how  bad  eco- 
nomic conditions  are  for  many  peoples  of  the 
world.  Famine,  disease,  and  poverty  are  the 
scourge  of  vast  areas  of  the  globe.  Hundreds  of 
millions  of  people  in  Asia,  for  example,  have  a 
life  expectancy  of  30  years  or  less.  Many  of 
these  people  live  on  inadequate  diets,  unable  to 
perform  the  tasks  necessary  to  earn  their  daily 
bread.  Animal  plagues  and  plant  pests  carry 
away  their  crops  and  their  livestock.  Misuse  of 
natural  resources  exposes  their  land  to  flood  or 

Conditions  such  as  these  are  the  seedbed  of  po- 
litical unrest  and  instability.  They  are  a  threat  to 
the  security  and  growth  of  free  institutions  every- 
where. It  is  in  areas  where  these  conditions  exist 
that  communism  makes  its  greatest  inroads.  The 
people  of  these  areas  are  eagerly  seeking  better  liv- 
ing conditions.  The  Communists  are  attempting 
to  turn  the  honest  dissatisfaction  of  these  people 
with  their  present  conditions  into  support  for 
Communist  efforts  to  dominate  their  nations. 

In  addition  to  these  attempts  at  persuasion,  the 
Communists  in  these  countries  use  the  weapon  of 
fear.  They  constantly  threaten  internal  violence 
and  armed  aggression. 

The  recent  unprovoked  invasion  of  the  Republic 
of  Korea  by  Communist  armies  is  an  example  of 
the  danger  to  which  the  underdeveloped  areas  par- 
ticularly ai'e  exposed. 

It  is  essential  that  we  do  everything  we  can  to 
prevent  such  aggression  and  to  enforce  the  prin- 
ciples of  the  United  Nations  Charter.  We  must 
and  we  shall  give  every  possible  assistance  to 
people  who  are  determined  to  maintain  their  in- 
dependence. We  must  counteract  the  Communist 
weapon  of  fear. 

But  we  must  not  be  misled  into  thinking  that 
our  only  task  is  to  create  defenses  against  aggres- 
sion.    Our  whole  purpose  in  creating  a  strong 

"  Made  at  the  annual  convention  of  the  American 
Newspaper  Guild,  at  Washington,  D.C.,  on  June  28  and 
released  to  the  press  by  the  White  House  on  the  same 

defense  is  to  permit  us  to  carry  on  the  great  con- 
structive tasks  of  peace.  Behind  the  shield  of  a 
strong  defense,  we  must  continue  to  work  to  bring 
about  better  living  conditions  in  the  free  nations. 

Strengthening  Undeveloped  Nations 

Particularly  in  the  underdeveloped  areas  of  the 
world,  we  must  work  cooperatively  with  local  gov- 
ernments which  are  seeking  to  improve  the  welfare 
of  their  people.  We  must  help  them  to  help  them- 
selves. We  must  aid  them  to  make  progress  in 
agriculture,  in  industry,  in  health,  and  in  the  edu- 
cation of  their  children.  Such  progress  will  in- 
crease their  strength  and  their  independence. 

The  growing  strength  of  these  countries  is  im- 
portant to  the  defense  of  all  free  nations  against 
Communist  aggression.  It  is  important  to  the  eco- 
nomic progress  of  the  free  world.  And  these 
things  are  good  for  us  as  well  as  good  for  them. 

For  these  reasons,  I  recommended  in  my  in- 
augural address  the  program  that  has  become 
known  as  "Point  4."  Tlie  Congress  has  recently 
authorized  technical  assistance  to  underdeveloped 
areas  under  this  program.  This  new  law  marks 
Congressional  indorsement  of  a  practical  and  sen- 
sible course  of  action  that  can  have  tremendous 
benefits  for  the  future  of  the  world. 

It  is  possible  to  make  tremendous  improvements 
in  underdeveloped  areas  by  very  simple  and  inex- 
pensive means.  Simple  measures,  such  as  the  im- 
provement of  seed  and  animal  stocks,  the  control 
of  insects,  the  dissemination  of  health  information, 
can  make  great  changes  almost  overnight.  This 
does  not  require  vast  expenditures.  It  requires 
only  expert  assistance  offered  to  the  people  on  a 
genuinely  cooperative  basis.  We  have  already 
seen,  on  a  relatively  small  scale,  what  can  h&, 

I  am  going  to  give  you  a  factual — a  reporter's — 
account  of  a  few  technical  assistance  projects  which 
have  raised  living  standards  in  the  countries  where 
they  were  carried  out.     These  are  a  preview  of 

Ju/y   ?7,   1950 


what  a  full-scale  Point  4  Program  can  mean  in 
the  future. 

Successful  Assistance  Projects 

In  northern  India,  there  is  a  very  rich  farming 
area  known  as  the  Terai  district.  In  recent  years, 
the  malaria  mosquito  forced  people  to  leave  this 
land.  One  hundred  and  four  villages  were  aban- 
doned. Even  in  the  face  of  India's  tragic  food 
shortage,  no  crops  were  planted  in  this  rich  soil. 

India  called  on  the  World  Health  Organization 
for  help,  and  that  organization  sent  a  malaria  con- 
trol team  which  arrived  in  northern  India  in  April 
1949.  In  the  face  of  great  difficulties,  this  inter- 
national group  sprayed  the  area  with  DDT. 

Today,  a  year  later,  no  infected  mosquito  is  to 
be  found  in  any  village  in  the  Terai  district. 
Local  workers  have  been  trained  to  continue  the 
spraying.  Families  who  were  refugees  from  ma- 
laria, only  1  year  ago,  are  back  in  their  homes,  and 
their  fields  are  green  again. 

This  demonstrates  how  a  simple  program  can 
make  tremedous  improvements  in  a  short  time. 

Let  me  give  you  another  example  of  what  Point 
4  can  mean;  this  one  in  Iran.  This  story  con- 
cerns not  an  international  organization  but  one 
of  our  American  voluntary  groups,  the  Near  East 

Four  years  ago,  the  Government  of  Iran  asked 
the  Foundation  to  set  up  a  demonstration  project 
in  a  group  of  35  villages  not  far  from  the  capital 
at  Tehran.  The  Foundation  brought  village  lead- 
ers to  a  series  of  training  courses.  It  won  their 
confidence,  and  through  these  leaders,  it  began  to 
carry  out  agricultural  and  health  improvements. 
The  Foundation  met  a  water  shortage  by  drilling 
deep  wells.  It  overcame  water-borne  diseases 
with  an  inexpensive  water  filter.  It  sprayed 
homes  with  DDT.  It  sprayed  crops  with  insecti- 
cides. It  helped  to  organize  schools  in  each  of 
the  35  villages. 

Today,  only  4  years  later,  the  village  people  are 
at  work  in  new  carpentry  shops,  vegetable  gardens, 
and  orchards.  And,  most  startling  of  all,  the 
yield  of  grain  in  this  area  has  tripled. 

The  effects  of  the  Near  East  Foundation's  work 
are  spreading  throughout  Iran.  This  story  will 
be  matched  many  times  over,  under  the  Point  4 

IVIy  next  illustration  is  in  the  Eepublic  of  Li- 
beria on  the  west  coast  of  Africa.  Here  a  United 
States  Government  economic  mission  has  been 
working  since  1944 — headed,  incidentally,  by  a 
former  agricultural  extension  agent  from  Mis- 
souri. This  mission  in  Liberia  has  laid  out  roads, 
and  mapped  the  timber  supply,  and  helped  to  open 
up  an  iron  deposit.  Agricultural  technicians  have 
helped  to  expand  rice  production  for  the  local 
market  and  the  production  of  palm  oil  and  cocoa 
for  export. 

The  effect  of  these  steps  has  been  remarkable. 
In  one  village  near  Monrovia,  the  cash  income  of 

the  people,  derived  from  selling  rice,  cocoa,  and 
palm  oil,  has  increased  from  5  dollars  per  pei-son 
a  year  to  35  dollars,  since  the  arrival  of  our  eco- 
nomic mission. 

Our  mission — which  has  only  five  Americans  in 
it — has  worked  in  close  cooperation  with  the  Li- 
berian  Government.  That  Government  already 
has  built  three  new  agricultural  experiment  sta- 
tions. This  is  remarkable  progress,  but  it  is  only 
the  beginning  of  the  economic  development  which 
Liberia  needs  to  become  a  prosperous  member 
of  the  family  of  nations. 

Point  4:  Equipment  for  Independence 

These  achievements  I  have  cited  are  samples  of 
the  kind  of  work  that  needs  so  badly  to  be  done 
in  underdeveloped  areas  all  over  the  world. 

Under  the  expanded  Point  4  Program,  we  can 
greatl}'  enlarge  the  scope  of  these  activities.  There 
are  tremendous  opportunities  to  improve  living 
standards  for  wide  areas  of  the  globe.  It  may 
prove  altogether  possible,  for  example,  through 
the  activities  of  the  Food  and  Agriculture  Organi- 
zation, to  wipe  out  the  scourge  of  rinderpest,  the 
fatal  animal  disease  that  is  responsible  for  much 
of  the  rural  poverty  of  the  Far  East.  The  devel- 
opment of  hybrid  rice  seed,  which  the  Food  and 
Agriculture  Organization  is  now  working  on, 
could  conceivably  increase  rice  production  by  10 
percent  and  improve  the  health  and  living  condi- 
tions in  the  Orient  immeasurably.  As  an  example 
of  what  hybrid  seed  can  do,  our  corn  hybrids, 
where  they  have  been  used  in  Italy,  have  increased 
corn  production  by  over  25  percent. 

Aside  from  these  basic  improvements  in  agri- 
culture and  health,  it  is  equally  important,  in 
many  areas,  to  build  modern  communication  and 
transportation  systems  and  to  establish  local  in- 
dustries. Without  these,  the  underdeveloped 
areas  cannot  put  their  natural  resources  to  use  for 
their  own  benefit  and  in  profitable  trade  with  the 
rest  of  the  world.  Building  roads,  and  railroads, 
and  factories  will  require  considerable  amounts  of 
public  and  private  capital.  To  aid  the  flow  of 
American  capital  abroad,  I  have  recommended 
that  the  Congress  provide  for  limited  guaranties 
to  encourage  greater  investments  overseas.  I  am 
hopeful  that  this  legislation  will  be  enacted  soon. 

Point  4  is  not  now — and  should  not  become — a 
matter  for  partisan  differences  of  opinion.  How- 
ever, some  critics  have  attempted  to  ridicule  Point 
4  as  a  "do-good"  measure;  others  have  said  it  is 
a  waste  of  money.  This  is  the  most  foolish  kind 
of  shortsightedness.  If  we  fail  to  carry  out  a 
vigorous  Point  4  Program  we  run  the  risk  of 
losing  to  communism,  by  default,  hundreds  of 
millions  of  people  who  now  look  to  us  for  help 
in  their  struggle  against  hunger  and  despair. 

Point  4  is  an  investment  in  a  peaceful  and  pros- 
perous world.  It  is  a  program  which  will  bring 
increasing  results  over  the  years.  It  will  bring 
about  a  chain  reaction  in  economic  development. 


Department  of  Slate  Bulletin 

It  will  serve  to  create  economic  health  where  pov- 
erty existed,  and  to  equip  the  people  of  under- 
developed areas  to  carry  forward  their  economic 
gains  and  preserve  their  independence. 

A  major  share  of  this  world  campaign  to  im- 
prove the  livelihood  of  peoples  will  be  carried  out 
under  the  United  Nations. 

U.N.  Technical  Assistance  Program 

In  the  United  Nations  Charter,  each  member 
government  pledged  that  it  would  promote  so- 
lutions of  international  economic,  social,  health, 
and  related  problems. 

At  its  last  session,  the  General  Assembly  voted 
unanimously  to  support  a  technical  assistance 
program  for  raising  the  standard  of  living  in 
underdeveloped  areas. 

Two  weeks  ago,  the  United  Nations  conducted 
a  Technical  Assistance  Conference  to  make  plans 
and  to  raise  funds  for  this  new  program.  Fifty- 
four  nations  attended  and  50  of  them  offered 

By  the  end  of  the  Conference,  more  than  20 
million  dollars  had  been  pledged.  The  United 
States  pledged  12  million  dollars,  subject,  of 
course,  to  the  appropriation  of  the  necessary  funds 
by  the  Congress.  This  was  the  largest  single 
contribution,  but,  in  relation  to  their  resources, 

a    number   of   other    nations   contributed    more. 

The  outstanding  characteristic  of  this  Technical 
Assistance  Conference  is  the  fact  that  it  demon- 
strated clearly  the  common  desire  of  the  peoples 
of  the  world  to  work  together  for  human  advance- 
ment. In  a  world  dark  with  apprehension,  the 
Point  4  idea  offers  new  hope. 

All  our  citizens  must  play  a  part  in  making  the 
Point  4  Program  a  success.  Our  missionary 
groups,  our  philanthropic  and  charitable  agencies, 
must  continue  the  efforts  they  have  been  making 
over  the  years  for  the  improvement  of  conditions 
in  foreign  lands.  Our  young  people  can  find 
careers  in  the  pioneering  woi'k  of  bringing  tech- 
nical assistance  to  these  countries.  Our  unions 
and  our  business  organizations  should  enlarge 
their  foreign  contacts  and  bring  the  benefits  of 
their  experience  to  less  developed  countries.  You 
newspaper  men  and  women  can  help  Point  4  to 
achieve  its  aims  by  telling  its  story  to  the  Ameri- 
can people  and  to  the  people  of  the  world. 

Our  Point  4  Program  and  the  work  of  the 
United  Nations  are  constructive  ways  to  build  the 
kind  of  world  where  all  nations  can  live  in  peace- 
ful prosperity,  dedicated  to  the  purpose  of  cre- 
ating better  lives  for  their  people.  We  support 
this  program  because  we  seek  a  peaceful  world, 
and  a  free  world,  where  all  men  can  live  as  good 

Foreign  Relations  Volumes  Released 

American  Republics 

The  Department  of  State  announced  on  June  17 
that  it  released  on  that  date  Foreign  Relations  of 
the  United  States,  1933,  Volume  IV,  The  Amer- 
ican Republics.  This  volume  contains  the  general 
section  on  problems  of  a  multilateral  nature  and 
on  relations  with  Argentina.  Volume  V,  con- 
taining papers  on  bilateral  relations  with  the 
other  republics  of  the  Western  Hemisphere  for 
1933,  will  be  published  later.  Volume  II,  dealing 
with  the  British  Commonwealth,  Europe,  the 
Near  East,  and  Africa,  and  Volume  III,  on  the 
Far     East,     have     previously     been     published. 

Efforts  to  restore  peace  and  to  maintain  good 
relations  between  the  states  of  the  Western  Hem- 
isphere are  the  chief  subjects  of  this  volume. 
Leading  jDlace  is  given  to  the  Seventh  Interna- 
tional Conference  of  American  States  held  at 
Montevideo  in  December  1933.  Other  major  chap- 
ters of  this  volume  record  the  combined  efforts  of 
the  League  of  Nations  and  of  the  United  States 
and  other  American  governments  to  settle  the 
Chaco  dispute  between  Bolivia  and  Paraguay  and 
the  Leticia  dispute  between  Colombia  and  Peru. 

Copies  of  this  volume  (Ixxxiv,  812  pp.)  may  be 
purchased  from  the  Superintendent  of  Documents, 
United  States  Government  Printing  Office,  Wash- 
ington 25,  D.C.,  for  $3.00  each. 

Political  and  Economic  Problems 

The  Department  of  State  released  on  June  27 
Foreig?!,  Relations  of  the  United  States,  1933,  Vol- 
ume I,  General.  This  volume  contains  more  than 
800  documents  on  international  political  and  eco- 
nomic problems,  the  multilateral  aspects  of  which 
cannot  be  listed  under  separate  country  headings. 
Volumes  II  (British  Commonwealth,  Eui'ope, 
Near  East,  and  Africa),  III  (Far  East),  and  IV, 
dealing  with  diplomatic  negotiations  among  the 
American  Republics  and  on  relations  with  Argen- 
tina, have  previously  been  published.  Volume  V, 
covering  bilateral  relations  with  the  other  Ameri- 
can Republics,  will  be  issued  later. 

Documents  in  volume  I  relate  to  the  Conference 
for  Reduction  and  Limitation  of  Armaments,  the 
major  political  problem. 

Other  documents  in  this  volume  are  devoted  to 
the  London  Economic  Conference. 

Negotiations  ancillary  to  the  London  Economic 
Conference,  such  as  those  relating  to  silver,  copper, 
and  wheat,  are  separately  treated;  similarly  are 
those  concerned  with  intergovernmental  debts, 
initiation  of  the  reciprocal  trade  agreements  pro- 
gram, and  the  Foreign  Bondholders  Protective 

Copies  of  this  volume  (xciii,  991  pp.)  may  be 
purchased  from  the  Superintendent  of  Documents, 
for  $3.75  each. 

Ju/y   U,  7950 


New  Challenges  to  American  Diplomacy 

hy  George  C.  McGhee^  Assistant  Secretary 

for  Near  Eastern,  South  Asian,  and  African  Affairs ' 

American  policies  grow  out  of  the  attitudes  and 
vital  interests  of  the  American  people.  The  pur- 
pose of  our  policies  is,  of  course,  to  preserve  and 
advance  those  interests.  Now,  what  are  the  most 
important,  the  most  vital  of  our  American  in- 
terests in  the  year  1950  ? 

First,  you  will  agree  that  our  fundamental 
national  interest  is  in  peace  and  security.  There- 
fore, it  is  our  policy  to  create  and  maintain  a  world 
climate  of  peace;  to  eliminate  the  recurrent  threat 
of  war. 

Second,  we  have  a  vital  interest  in  being  able 
to  continue  to  enjoy,  here  in  this  country,  our 
own  democratic  way  of  life.  Our  policies  are, 
therefore,  designed  to  strengthen,  both  here  and 
abroad,  the  rights  and  freedoms  of  the  individual 
which  are  basic  to  our  system. 

Third,  we  have  an  interest  in  economic  progress, 
both  as  an  end  in  itself  and  as  a  means  of  achieving 
our  other  objectives.  Our  policies  must  aim  at 
improving  our  own  standard  of  living.  They 
must  help  to  promote  healthy  economic  conditions 
generally  throughout  the  world. 

A  New  American  interest 

Now  if  we  look  back  over  the  past  half  century, 
we  see  that  these  vital  interests  in  peace,  freedom, 
and  economic  progress  have  been  continuously 
threatened  and  periodically  attacked.  The  ex- 
perience of  two  world  wars  and  a  major  depres- 
sion has  taught  us  that  we  have  a  fourth  vital 
interest.  It  has  become  clear  that  the  peace,  the 
freedom,  the  economic  progress — more  than 
these — the  very  survival  of  our  country — depend 
on  a  clear  recognition  and  a  vigorous  pursuit  of 
that  fourth  national  interest. 

We  have  learned,  in  short,  that  we  have  a  vital 

'  An  address  made  before  the  Northwest  Institute  of 
International  Relations  at  Portland,  Oreg.,  on  June  22  and 
relea.sed  to  the  press  on  the  same  date. 

interest  in  building  an  international  community 
based  on  principles  which  have  become  universally 
accepted  among  civilized  men  but  which  have  not 
been  universally  practiced  among  nations.  Such 
an  international  community  would  permit  the 
application,  between  nations,  of  the  same  basic 
principles  that  apply  between  individuals  within 
a  democracy.  Each  country  would  be  able  to 
make  its  own  unique  contribution  to  the  world 
community  in  the  light  of  its  own  particular  his- 
tory, interests,  and  capabilities. 

Such  a  community,  we  have  come  to  believe, 
offers  the  best  and  perhaps  the  only  chance  of 
preserving  and  promoting  our  national  interests. 
I  think  it  is  accurate  to  say  that  the  building  of 
this  community  constitutes  the  boldest  challenge 
to  American  leadership  in  the  world  today.  To 
the  present  generation  of  Americans,  it  offers  a 
tangible  hope  for  a  better  world. 

We  have,  moreover,  already  taken  the  lead  in 
creating  such  a  community,  and  much  progress 
has  been  made.  The  Charter  of  the  United 
Nations  embodies  the  principles,  and  the  organi- 
zation of  the  United  Nations  provides  a  founda- 
tion, on  which  an  international  community  can  be 
built.  We  have  taken  further  action  to  strengthen 
the  foundation  by  means  consistent  with  the 
Charter,  such  as  the  Rio  pact  and  the  North  At- 
lantic Treaty. 

I  need  not  recount  to  you  all  that  the  free 
nations  of  the  world  have  done  to  organize  and 
strengthen  themselves  in  the  5  short  years  since 
the  end  of  hostilities.  I  predict  that  men  will 
look  back  on  this  period  as  one  of  remarkable 
progress  toward  this  end.  Indeed,  I  think  we 
tend  to  underestimate  our  achievements,  to  play 
down  what  we  have  succeeded  in  doing,  and  to 
highlight  what  we  have  not  done. 

Perhaps,  on  the  other  hand,  we  have  not  always 
correctly  estimated  the  difficulties  that  were  in- 
hei-ent  in  what  we  were  trying  to  do.  Perhaps, 
we  did  not  foresee,  and  could  not  have  foreseen. 


Department  of  State   Bulletin 

that  some  of  these  difficulties  would  become  serious 
obstacles  to  the  building  of  an  intei-national 

Obstacles  To  Building  a  World  Community 

One  of  those  obstacles  was  a  direct  consequence 
of  the  war.  It  was  nothing  less  than  the  tem- 
porary eclipse  of  Western  Europe  as  a  produc- 
tive and  jjrogressive  force  in  the  world.  What 
had  been  a  great  workshop,  the  largest  single 
aggregation  of  skilled  people  in  the  world,  an 
essential  link  in  world  trade,  and  the  center  of 
far-flung  empires,  was  a  continent  in  chaos  and 
despair.  Iklillions  of  its  people  were  homeless, 
jobless,  hungry,  and  without  hope  at  the  war's 

With  our  help,  these  people  are  rebuilding  their 
lives,  reorganizing  their  societies  in  a  new  and 
more  cooperative  spirit.  Today,  Western  Europe 
is  still  a  stronghold  of  freedom.  The  gi-atifying 
response  to  the  bold  proposal  of  FrencTi  Foreign 
Minister  Schuman  for  the  integration  of  the  basic 
European  industries,  and  to  the  proposed  forma- 
tion of  the  European  Payments  Union,  shows  that 
its  members  are  playing  an  active  and  creative 
part  in  the  building  of  our  international 

The  postwar  collapse  of  Western  Europe  might 
have  delayed  indefinitely  and  even  prevented  the 
building  of  a  strong  community  of  free  nations. 
The  fact  that  the  trend  has  been  reversed  by  a 
combination  of  creative  imagination,  planning, 
and  sheer  hard  work,  is,  as  General  Marshall  put 
it,  a  "near  miracle."  The  fact  that  the  Western 
European  countries  have  not  all  rebuilt  their 
economies  on  strictly  American  lines  seems  to 
trouble  some  people.  To  me,  it  demonstrates  that 
there  is  room  for  wide  diversity  of  approach  to 
the  problems  of  a  free  world.  We  Americans 
should  welcome  that  divei'sity,  for  it  is  a  funda- 
mental principle  of  our  own  way  of  life. 


A  second  serious  obstacle  to  the  building  of  an 
international  community  is,  of  course,  the  threat 
of  Soviet  imperialism.  We  have  watched  the  So- 
viet design  unfolding  over  the  past  5  years.  We 
see  it  at  work,  today,  in  many  parts  of  the  world, 
including  the  Far  East,  and  we  have  been  forced 
inescapably  to  the  conclusion  that  it  is  hostile  to 
the  creation  of  a  community  of  free  nations.  Its 
facade  of  Marxist  communism  has  been  clearly  re- 
vealed as  a  mask  for  naked  aggression. 

The  men  in  the  Kremlin  want  to  organize  the 
world,  to  be  sure.  But  they  want  to  organize  it 
on  principles  that  civilized  men  have  rejected  and 
fought  during  hundreds  of  years.  The  Soviet 
principle  is  rule  by  absolute  power,  the  power  of 
a  small  group  of  men  over  other  men,  the  power 
of  one  nation  over  other  nations.  The  means  of 
achieving  this  power  are  the  police  state,  subver- 
sion, and  concealed  aggression. 

July   17,   1950 

894368—50 3 

We  believe  that  we  have  learned  how  to  meet 
that  threat.  We  may  not  always  be  able  to  con- 
tain it  at  every  point,  but  we  are  confident  that 
we  can  not  only  contain  but  overcome  it  in  time 
by  a  great  cooperative  effort  of  free  men.  We 
shall  overcome  it  in  the  very  act  of  building  an 
international  community  so  strong,  so  free,  and  so 
prosperous  that  all  peojile  will  want  to  be  a  part 
of  it,  even  those  whose  governments  are  now 
opposing  it. 


But  even  if  Western  Europe  had  not  suffered  a 
temporary  eclipse,  even  if  the  Soviet  Union  had 
been  a  strong  and  willing  partner,  we  would  still 
have  had  to  deal  with  a  third  obstacle  to  the  build- 
ing of  an  international  community.  We  would 
still  have  been  faced  with  the  fact  that  large  areas 
of  the  world  and  hundreds  of  millions  of  people 
are  not  yet  in  a  position  to  make  t'heir  full  con- 
tribution to  the  economic  and  political  life  of  an 
international  community. 

I  want  to  talk  tonight  about  some  of  these  areas, 
in  South  Asia,  Africa,  and  the  Near  East,  which 
constitute  my  special  responsibility  in  the  State 
Department.  Although  these  areas  have  rich  ma- 
terial resources  and  human  potentialities,  they  are 
included  in  the  "underdeveloped"  regions  of  the 
world.  This  region  contains  almost  700  million 
people.  It  includes  the  great  subcontinent  of  India 
and  Pakistan,  two  nations  which  have  only  re- 
cently joined  the  international  community  as  fully 
independent  members.  It  includes  the  expanses  of 
the  Near  East,  with  states  as  old  as  Greece  and 
Iran  and  as  young  as  Israel  and  Jordan.  It  in- 
cludes also  the  continent  of  Africa,  with  its  inde- 
pendent peoples  of  Liberia  and  Ethiopia  and  its 
numerous  protectorates,  colonies,  and  trust  terri- 
tories administered  by  European  powers. 

The  people  of  this  area  practice  five  great  re- 
ligions: Islam,  Christianity,  Hinduism,  Judaism, 
and  Buddhism.  They  speak  more  than  145  lan- 
guages. Much  of  what  we  now  know  and  value 
in  the  realm  of  science,  art,  religion,  and  philos- 
ophy, we  drew  from  their  early  cultures. 

How  can  one  generalize  about  an  area  so  vast? 
If  there  is  a  common  denominator  among  these 
lands  and  their  peoples  it  is  the  fact  that  all  have 
great  potentialities  which  have  not  yet  been  real- 
ized. Another  common  characteristic  of  these 
people  is  their  growing  realization  that  they  have 
not  participated  fully  in  the  world's  progress  and 
their  desire  to  make  up  for  lost  time. 

Symbols  of  Progress 

They  have  made  substantial  progress  in  terms 
of  political  independence,  representative  govern- 
ment, and  personal  freedom.  In  the  period  be- 
tween the  two  world  wars,  Egypt,  Saudi  Arabia, 
and  Iraq  gained  full  independence.  More  recently, 
this  area  has  given  birth  to  nine  other  nations: 


Syria,  Lebanon,  Israel,  and  Jordan  in  the  Near 
East;  India,  Pakistan,  Ceylon,  and  Burma  in 
South  Asia.  Libya  has  been  promised  its  inde- 
pendence by  1952  and  Italian  Somaliland  within 
10  years. 

Political  independence,  however,  is  only  one 
symbol  of  progress  .  It  is  not  the  only  symbol. 
These  people  are  beginning  also  to  associate  prog- 
ress with  a  chance  to  better  their  lot  in  the  world. 
They  want  better  food,  better  housing,  better 
schools,  better  health,  and  they  are  willing  to  make 
great  efforts  in  order  to  obtain  them.  Although 
this  new  urge  creates  great  dislocations  and  on 
occasion  disappointments,  it  is  on  balance  an  en- 
couraging development.  It  shows  a  growing 
understanding  on  the  part  of  these  peoples  of  their 
ability  to  help  themselves.  It  shows  a  will  to 
change.  It  is  a  force  which,  if  used  for  construc- 
tive ends,  can  help  achieve  our  objective  of  creating 
a  stable  international  community. 

Now  what  do  these  distant  events  mean  to  Amer- 
icans? Do  they  affect  our  vital  interests,  and,  if 
so,  how  should  we  shape  our  policies  ?  Whenever 
these  questions  are  asked  of  me,  in  one  form  or 
another,  I  think  of  the  tragic  and  ironic  remark 
that  Neville  Chamberlain  made  at  the  time  of 
Munich,  when  he  said,  in  a  broadcast,  that  Czecho- 
slovakia was  a  far-away  country  of  which  we  knew 

During  the  past  year,  I  have  visited  almost  all 
of  the  countries  under  discussion.  The  places  and 
the  peoples  I  have  been  describing  may  seem  far 
away  to  you,  and  we  Americans  may  still  know 
little  about  them.  But  surely  we  know — or  should 
know  by  now — that  there  is  no  corner  of  the  world 
so  remote  that  its  fate  cannot  affect  our  own. 

Community  Problems  on  a  Familiar  Scale 

But  let  us  assume  that  our  interest  in  these  far- 
off  peoples  still  needs  to  be  demonstrated.  Most 
of  the  states,  I  have  mentioned,  belong  to  the  in- 
ternational community  of  which  we  have  been 
speaking.  Let  us,  by  the  convenient  device  of 
oversimplification,  reduce  this  community  problem 
to  a  familiar  scale.  Let  us  suppose  that  a  com- 
parable community  problem  existed  in  a  city  like 

Suppose  you  could  apply  the  term  underdevel- 
oped to  two-thirds  of  the  people  of  that  city,  whicli 
is  about  the  proportion  of  peoples  of  underdevel- 
oped areas  to  the  population  of  the  world  as  a 
whole.  That  figure  would  mean  that  two-thirds 
of  the  men,  women,  and  children  of  Portland 
are  now  living  in  dire  poverty,  hunger,  disease, 
and  ignorance,  amidst  one-third  that  are  enjoy- 
ing all  of  the  benefits  of  the  good  life  in  this 
beautiful  city. 

In  this  imaginary  Portland,  it  would  mean  that 
among  the  citizens  you  would  have  an  annual  death 
rate  of  28  per  thousand,  compared  with  10  for  the 
more  favored  citizens,  although  the  birth  rate 
would  be  44  per  thousand,  rather  than  26.     Infant 


mortality  would  be  153  per  thousand  live  births, 
instead  of  25.  Deaths  from  tuberculosis  might 
be  as  high  as  283  per  hundred  thousand,  instead 
of  33.  These  are  figures  from  a  representative 
part  of  the  underdeveloped  area. 

More  than  eight  out  of  ten  adults  in  this  group 
could  not  read  or  write.  In  other  words,  they 
would  have  an  illiteracy  rate  of  80  percent  instead 
of  3  percent.  Their  per  capita  income  would  be 
somewhere  between  5  and  85  dollars  a  year,  instead 
of  the  average  American  figure  of  1,410  dollare. 
Suppose  that  the  life  expectancy  of  this  two-thirds 
of  Portland's  population,  instead  of  C3  yeai-s,  were 
about  30  years ;  that,  in  other  words,  these  particu- 
lar citizens  of  Portland  could  expect  to  die  when 
the  rest  of  your  citizens  were  approaching  the 
most  productive  and  useful  years  of  their  lives. 

If  you  can  imagine  such  a  situation,  I  think  you 
will  agree  that  it  would  create  a  grave  problem 
for  the  whole  imaginary  community  of  Portland. 
Indeed,  the  two-thirds  would  scarcely  be  convinced 
that  the  community  as  organized  offered  them 
adequqate  oiDportunities.  They  would  have  little 
incentive  to  support  the  community  but  would  seek 
to  change  it  or — failing  that- — to  overthrow  it  by 
force.  They  would  form  an  easy  foil  for  trouble- 
makei-s  and  agitators.  The  privileged  one-third 
would,  indeed,  have  an  uneasy  and  insecure 

I  have  not  talked  about  the  underdevelo])ed 
lands  of  South  Asia,  Africa,  and  the  Near  East 
in  terms  of  the  Soviet  threat,  and  I  shall  not  do 
so.  Communism  in  these  particular  areas  is  not 
an  immediate  danger.  The  problem  in  these  areas 
is  not  to  put  out  fires,  since  the  sparks  of  com- 
munism have  not  found  adequate  fuel  there.  But 
comnuuiism  may  well  become  a  threat  if  the  grow- 
ing aspirations  of  these  peoples  are  frustrated. 
The  problem  is  to  help  the  peoples  of  these  areas 
build  a  house  that  will  be  fireproof.  And  when 
we  think  of  the  time  required  for  the  building,  we 
think  in  terms  not  of  months  or  years  but  of 

What  should  our  policies  be  toward  these  un- 
derdeveloped peoples'?  What  type  of  assistance 
can  we  render  them  that  is  within  our  means  and 
will  be  effective  in  meeting  their  particular 
problems  ? 

Policies  Toward  Asia,  Africa,  and  Near  East 

First,  we  must  keep  in  mind  that  we  are  deal- 
ing with  proud  and  independent  peoples.  In 
many  instances,  they  are  the  direct  inheritors  of 
distinguished  civilizations  that  provided  the  basis 
for  our  own  more  recent  civilization.  Their  de- 
velopment will  not  take  place  along  the  same  lines 
as  ours.  They  must  develop  in  their  own  way,  and 
their  way— for  them— can  be  just  as  right  as  is 
our  way— for  us.  The  goals  toward  which  they 
strive,  although  not  always  identical  with  ours,  can 
assure  them  the  same  fullness  of  life  and  the 

Department  of  Sfafe   Bulletin 

same  opportunities  to  make  a  contribution  to  the 
world  eomniunity  as  does  ours. 

In  any  event,  they  intend  to  shape  tlieir  own 
future.  Fortunately,  that  future  is,  today,  in  the 
hands  of  some  ^I'^i^t  leaders,  with  whom  we  are 
working  on  a  basis  of  mutual  understanding  and 
respect.  Several  of  these  leaders  have  only  re- 
cently visited  the  United  States  at  our  invitation. 
We  hope,  increasinfjly,  to  convince  them  that  our 
attitude  toward  them  is  friendly  and  disinter- 
ested: that  we  have  no  desire  to  dominate  them, 
to  enlist  them  in  any  "bloc"  in  pursuit  of  our 
own  interests,  or  to  force  our  economic  system  or 
ideologies  upon  them. 

We  must  also  not  think  of  assistance  as  being, 
exclusively,  in  terms  of  financial  aid.  Indeed,  I 
am  afraid  that  we  have,  as  a  result  of  the  highly 
successful  European  Recovery  Program,  which 
was  basically  financial  in  nature,  come  to  attach 
too  much  importance  to  financial  assistance  and 
too  much  confidence  in  its  ability  to  meet  all  prob- 
lems. There  are  in  the  underdeveloped  areas  too 
many  other  limiting  factors,  too  many  other  basic 
problems  to  be  overcome  to  permit  the  useful  ex- 
penditure of  large  amounts  of  capital  in  a  short 
time,  even  if  such  funds  existed  in  inexhaustible 
supply,  which  they  do  not.  Dreams  of  a  Ten- 
nessee Valley  Authority  for  the  Tigris-Euphrates 
Valley  must  await  the  achievement  of  less  am- 
bitious beginnings  with  smaller  dams  and  works. 

But  beginnings  must  be  made.  Our  efforts  must 
begin  where  the  people  of  the  underdeveloped 
areas  now  are.  We  must  help  them  with  all  the 
various  means  at  our  disposal — financial,  tech- 
nical, administrative,  and  moral  assistance, 
to  meet  their  basic  problems  in  their  way,  to  in- 
crease production  of  food,  to  pi'ovide  better 
houses,  better  roads,  schools,  health,  and  public 

We  know  that  we  cannot  oifer  them  our  own 
standards.  We  cannot,  even  within  the  city  of 
Portland,  guarantee  absolute  uniformity  of  liv- 
ing standards  even  though  there  is  an  opportunity 
for  all  people.  We  can,  however,  demonstrate  our 
desire  to  assist  by  means  of  tangible  evidence  of 
progress.  We  can  give  these  peoples  hope  which 
will  provide  the  incentive  to  seek  their  future  in 
continued  cooperation  with  us  and  the  other  free 
nations  of  the  world,  within  the  framework  of  the 
United  Nations. 

What  have  we  done  so  far?     Is  it  enough? 


Apart  from  the  magnificent  work  which  our 
private  organizations  have  carried  on  in  these 
areas  for  many  years,  American  aid  has  thus  far 
been  modest.  It  has  taken  a  number  of  forms,  in 
response  to  many  diverse  situations. 

We  have  extended  loans,  through  the  Export- 
Import  Bank,  for  development  projects  in  Greece, 
Turkey,  Egypt,  Israel,  Saudi  Arabia,  Afghanis- 
tan, Ethiopia,  and  Liberia.    We  have  supported 

loans  to  India  and  Iraq  by  the  International  Bank 
for  Eeconstruction  and  Development.  The  Euro- 
pean Recovery  Program  has  enabled  us  to  con- 
tribute, directly,  to  economic  rehabilitation  and 
development  in  Greece  and  Turkey  and  to  eco- 
nomic development  in  the  overseas  territories  of 
European  nations  in  Africa;  In  Greece  and 
Turkey,  and  now  Iran,  we  have  met  special 
emergencies  with  a  highly  successful  program  of 
military  aid,  under  the  Mutual  Defense  Assistance 

We  have,  as  you  know,  been  carrying  on  a  pro- 
gram for  the  exchange  of  teachers,  students,  and 
technicians  of  various  kinds.  We  can  now  pro- 
vide scholarships  under  Fulbright  agreements 
with  Greece,  India,  Burma,  Egypt,  Iran,  and 
Turkey.  We  set  great  store  by  these  exchange 
programs.     We  hope  to  extend  them  considerably. 

Congress  has  now  authorized  the  Point  4  Pro- 
gram of  technical  assistance,  and  we  hope  that 
approjiriation  will  soon  be  made  to  perinit  that 
vital  program  to  get  under  way.  The  area  under 
discussion,  which  includes  a  large  portion  of  the 
underdeveloped  part  of  the  world,  was  very  much 
in  Pi'esident  Truman's  mind  when  he  first  an- 
nounced his  program  of  technical  assistance. 


From  now  on,  a  sizable  part  of  our  technical 
assistance  will  go  forward  through  the  United 
Nations  and  its  specialized  agencies.  I  want  to 
mention  just  one  of  these  projects  which  is  now 
being  put  into  operation.  That  is  a  United  Na- 
tions program  of  relief  and  works  projects  for  the 
Arab  refugees  from  Palestine,  for  which  the  Con- 
gress has  recently  authorized  an  American  con- 
tribution of  about  27  million  dollars. 

This  project  grew  out  of  a  United  Nations  Eco- 
nomic Survey  Mission  headed  by  Gordon  Clapp, 
Chairman  of  the  Board  of  the  Tennessee  Valley 
Authority.  I  can  give  you  no  better  statement  of 
our  policy  toward  the  underdeveloped  areas  than 
by  quoting  from  his  report. 

Higher  living  standards  [says  the  Introduction  to  this 
report]  cannot  be  bestowed  by  one  upon  another  like 
a  gift.  An  improved  economy  does  not  come  in  a  neat 
package  sold  or  given  away  in  the  market  place.  A  higher 
standard  of  living  must  grow  out  of  the  application  of 
human  skill  and  ingenuity  to  the  physical  resources  of 
a  country  or  region. 

The  highly  developed  nations  of  the  world  did  not  make 
their  way  by  wishing.  By  work  and  risk  they  forced 
the  earth,  the  soil,  the  forests  and  the  rivers  to  yield 
them  riches.  They  pooled  their  energy  and  resources  by 
taxation  and  mutual  enterprise  to  discover  new  ways  of 
doing  tilings.  They  worked,  they  invented,  they  edu- 
cated and  trained  their  children,  and  they  invested  in 
their  national  and  in  their  private  enterprises.  This  they 
must  continue  so  to  do,  if  they  are  to  maintain  the  standard 
of  living  they  have  achieved. 

There  is  no  substitute  for  the  application  of  work  and 
local  enterprise  to  each  country's  own  resources.     Help 

July   17,   1950 


to  those  who  have  the  will  to  help  themselves  should  be 
the  primary  policy  guiding  and  restraining  the  desire 
of  the  more  developed  areas  of  the  world  to  help  the  less 
developed  lands. 

This,  I  believe,  is  both  an  accurate  and  a  realistic 
statement  of  our  policies  toward  the  peoples  of 
the  underdeveloped  areas  of  the  world.  Our  ap- 
proach to  these  jjeople,  and  it  is  a  characteristically 
American  approach,  is  on  the  level  of  partnership. 
We  know  that  human  progress  cannot  be  bestowed ; 
that  it  must  grow  out  of  cooperative  effort ;  out  of 
mutual  respect.  We  know  also  that  it  can  only 
be  made  to  grow  among  those  who  have  the  will 
to  help  themselves. 

Among  the  many  who  have  that  will  and  who 
look  to  us  for  cooperation,  there  is  a  natural  im- 
patience to  get  on  with  the  job,  a  tendency  to  feel 
that  the  United  States  is  not  doing  enough  to  as- 
sist the  underdeveloped  areas  to  play  their  part 
in  the  building  of  a  community  of  free  nations. 
Indeed,  we  must  do  so,  since  it  is  in  our  own  vital 
interests  to  achieve  this  objective.  We  must  make 
certain  that  we  leave  nothing  undone  that  is  within 
our  capability  to  assure  that  other  peoples  are  con- 
vinced that  their  own  aspirations  can  best  be 
served  within  the  community  of  free  nations. 
Only  by  so  doing  can  we  assure  the  realization  of 
our  own  aspirations. 

Support  for  an  Expanded  Information  and  Education  Program 

Statement  hy  Secretary  Acheson  ^ 

I  welcome  warmly  the  action  of  Senator  Benton 
and  the  12  Senators  ^  associated  with  him  in  intro- 
ducing Senate  Resolution  243,  calling  for  "a 
greatly  expanded  program  of  information  and  ed- 
ucation among  all  the  peoples  of  the  world  to  the 
full  extent  that  they  can  be  reached."  The  spon- 
sors of  this  resolution  have  accurately  diagnosed 
one  of  the  elements  not  only  vital  but,  in  fact,  indis- 
pensable to  the  conduct  of  American  foreign  rela- 
tions today.  We  must  make  the  truth  known  to 
the  peoples  of  the  world.  This  is  a  task  that  calls 
for  greatly  expanded  and  intensified  efforts. 

Truth  in  the  world  today  is  a  political  force, 
Nothing  makes  plainer  the  power  of  this  force,  I 
think,  than  the  Communist  fear  of  it.  Behind 
the  Iron  Curtain,  it  has  been  said,  "Truth  is  trea- 
son." We  are  familiar  with  the  immense  machin- 
ery of  the  police  states  for  insuring  that  the  words 
and  acts  of  their  citizens  conform  slavishly  to  the 
doctrines  advocated  publicly  by  their  masters. 
That  machinery  has  also,  as  one  of  its  primary 
tasks,  to  exclude  the  truth,  to  suppress  facts.  Some 
of  tliese  facts  seem  to  us  curiously  harmless,  but 
once  you  begin  to  exclude  the  truth,  to  found  your 
state  on  deliberately  preserved  ignorance  and  de- 
liberately disseminated  falsehood,  even  very  simple 
facts  have  a  potentially  explosive  force. 

'  Made  before  a  subcommittee  of  the  Senate  Committee 
on  Foreign  Relations  on  S.  R.  243  on  July  5  and  released  to 
the  press  on  the  same  date. 

'  Submitted  by  Senator  Benton  on  March  22  for  himself 
and  Senators  Douglas,  Flanders,  Fulbright,  Graham.  Hen- 
drickson,  Lehman,  McMahon,  Morse,  Mundt,  Smith 
(Maine),  Sparkman,  and  Tobey. 


Communist  States  Fear  Truth 

The  Communist  states  have  not  only  shown  their 
fear  of  truth  by  elaborate  internal  controls  and 
policing.  They  have  set  up  at  their  borders  bars 
against  free  communication  and  free  movement  of 
men,  books,  ideas — against  all  the  carriers  of  truth 
and  information.  They  have  pursued  a  policy  of 
deliberate  self-isolation.  They  are  afraid  to  let 
their  citizens  look  out,  and  they  are  afraid  to  let 
others  look  in.  The  recent  demands  that  the 
United  States  close  its  information  services  in  Ru- 
mania and  Czechoslovakia  are  witnesses  to  the 
power  of  truth  as  a  political  force.  So  is  the  Soviet 
jamming  of  our  radio  broadcasts. 

If  totalitarian  regimes  cannot  flourish  where  the 
truth  is  fully  available,  free  and  democratic  coun- 
tries cannot  flourish  unless  their  citizens  do  have 
access  to  the  truth.  The  freedom  of  free  nations 
grows  out  of  the  minds  of  its  citizens.  Free  men 
make  up  their  own  minds,  on  the  basis  of  free 
access  to  the  truth,  to  the  facts. 

The  growth  of  an  international  community  of 
free  and  democratic  nations  depends  upon  the 
ready  and  free  flow  of  facts,  ideas,  and  people. 
Only  this  free  flow  of  facts,  ideas,  and  people  can 
make  clear  the  common  bonds  and  interests  of  na- 
tions and  allow  them  to  settle  their  differences 
peaceably  and  justly. 

International  Communist  propaganda  has  been 
engaged  in  a  great  campaign  of  falsification,  dis- 
tortion, suppression,  and  deception.  We  have  had 
recently  in  Korea  an  illustration  of  the  cruel  de- 
ception being  practiced  by  Communist  propaganda 
on  the  universally  felt  desire  for  peace.     Just  a 

Department  of  State  Bulletin 


few  weeks  before  Cominmiist  armed  forces 
launched  tlieir  carefully  planned  attack  across  the 
38tli  parallel,  over  half  the  population  of  North 
Korea  was  reported  to  have  signed  Communist- 
circulated  petitions  for  peace.  The  cynical  ag- 
gression of  communism  in  Korea,  and  the  false- 
hoods that  have  preceded  and  accompanied  it, 
make  inescapably  clear  the  unportance  of  the  ob- 
jectives in  this  proposed  resolution. 

This  country  has  been  a  special  target  of  the 
Communist  campaign  of  falsehood  and  abuse. 
We  have  not  been  selected  as  a  target  simply  be- 
cause the  Communists  do  not  love  us.  The  Com- 
munist effort  to  misrepresent  and  discredit  the 
aims  and  nature  of  American  life,  and  the  aims 
and  nature  of  American  foreign  policy,  has  pri- 
marily a  great  strategic  value  in  the  furtherance 
of  Communist  world  objectives.  This  Commu- 
nist campaign,  therefore,  jeopardizes  the  security 
of  the  United  States  and  is  a  threat  to  the  security 
of  the  free  world. 

Objectives  of  Communist  Campaign 

One  of  the  strategic  objectives  of  this  Commu- 
nist campaign  is  to  divide  the  free  world,  whose 
unity  is  essential  to  its  strength  and  essential  to 
the  elimination  of  Communist  expansion. 

Another  is  to  confuse  the  world  about  the  nature 
of  democratic  aspirations  and  ideals  and  to  weaken 
the  moral  force  and  attraction  of  the  free  world. 

Another  is  to  spread  deception  about  the  free 
world's  strength  and  resources,  of  every  kind,  and, 
thus,  to  weaken  the  free  world's  confidence  in  itself. 

Another  is  to  sow  doubts  regarding  the  free 
world's  firmness  of  purpose,  its  determination  to 
fulfill  the  international  obligations  it  has  accepted 
in  the  cause  of  freedom,  and,  thus,  to  produce  ir- 
resolution, fear,  and  uncertainty. 

So  far  as  Communist  efforts  to  foster  falsehood 
about  the  United  States  are  successful,  they  serve 
these  Communist  designs.  They  help  to  drive 
wedges  between  the  United  States  and  other  coun- 
tries, to  create  hesitancy,  and  to  prevent  clear, 
effective,  imified  resistance  against  Communist 

We  must,  therefore,  make  unmistakable  the 
truth  about  the  United  States  and  the  other  free 
nations.  In  doing  this,  we  will  make  plain  the 
essential  bond  of  common  beliefs,  and  common  in- 
terests that  underlie  differences  in  national  cus- 
toms and  circumstances.  We  must  make  plain  the 
facts  of  international  relationships  today,  so  that 
every  man  has  an  opportunity  to  make  a  true  judg- 
ment on  the  immense  issues  and  decisions  that  con- 
front him.  We  must  make  plain  the  difference 
between  Communist  pretensions  and  Communist 

The  President,  in  his  address  before  the  Ameri- 
can Society  of  Newspaper  Editors  on  April  20,^ 

Our  task  is  to  present  the  truth  to  the  millions  of  people 

wlio  are  uninformed  or  uiisiuformed  or  unconvinced.  Our 
task  is  to  reach  them  in  their  daily  lives,  as  they  work 
and  learn.  We  must  be  alert,  ingenious,  and  diligent  in 
reaching  peoples  of  other  countries,  whatever  their  edu- 
cational and  cultural  backgrounds  may  be.  Our  task  is 
to  show  them  that  freedom  is  the  way  to  economic  and 
social  advancement,  the  way  to  political  independence,  the 
way  to  strength,  happiness,  and  peace. 

.  .  .  We  must  pool  our  efforts  with  those  of  the  other 
free  peoples  in  a  sustained,  intensified  program  to  promote 
the  cause  of  freedom  against  the  propaganda  of  slavery. 
We  must  make  ourselves  heard  round  the  world  in  a 
great  campaign  of  truth. 

The  President  directed  me  at  that  time  "to  plan 
a  strengthened  and  more  effective  national  effort 
to  use  the  great  power  of  truth  in  working  for 
peace."  In  accordance  with  that  directive,  the 
Department  of  State  has  submitted  to  the  Presi- 
dent a  plan  for  a  broader  and  stronger  program  of 
information  and  education  designed  to  carry  out  "a 
great  campaign  of  truth,"  in  the  interest  of  a  free 
and  peaceful  world.  That  plan  is  presently  being 
considered  by  the  President.  It  is  dedicated  to  the 
achievement  of  the  principles  and  purposes  so 
clearly  set  forth  in  the  proposed  resolution. 

Necessity  for  a  Truth  Campaign 

The  task  of  telling  the  truth,  as  the  President 
has  emphasized,  is  not  "separate  and  distinct  from 
other  elements  of  our  foreign  policy.  It  is  a 
necessary  part  of  all  we  are  doing  to  build  a  peace- 
ful world."  It  is  essential  to  the  success  of  our 
foreign  policy  that  the  military,  political,  and 
economic  measures  we  are  taking  be  accompanied 
by  an  effective  information  program.  The  Mar- 
shall Plan,  Point  4,  military  aid  must  be  seen  fully 
and  truthfully  in  the  widest  context  of  the  United 
States'  hopes  and  aspirations.  The  facts  about 
what  we  do,  the  facts  about  why  we  do  it,  the  facts 
about  the  way  we  do  it,  are  integral  parts  of  what 
we  do  in  foreign  affairs. 

We  must  remember  in  these  efforts  that  the  truth 
is  a  hard  master. 

We  must  always  be  on  our  guard  against  per- 
mitting what  we  say  to  outrun  what  we  do.  We 
must  recognize  that  the  more  fully  our  principles 
are  understood,  the  more  closely  our  practice  will 
be  inspected.  Our  performance  must  not  lag  be- 
hind our  principles.  We  must  remember,  too,  that 
jieoples  speaking  to  peoples  involves  peoples  lis- 
tening to  peoples.  We  must  remember  that  the 
truth  cannot  be  monopolized. 

In  the  struggle  for  men's  minds  and  men's  al- 
legiances, the  free  nations  have  great  advantages. 
The  truth  is  on  their  side.  In  addition,  the  free 
nations  have  developed  to  a  high  degree  as  in- 
tegral parts  of  their  free  institutions,  technical 
resources  and  skills  for  discovering  the  truth  and 

'  For  a  complete  text  of  President's  address,  see  Bttlle- 
TiN  of  May  1, 1950,  p.  669. 

July  17,   7950 


for  telling  the  truth.  The  democratic  concept  has 
depended  on  the  ability  of  every  man  to  learn  the 
truth  and  to  act  as  an  individual  on  the  basis  of  it. 
Just  as  totalitarian  states  by  their  nature  are 
equi^Dped  to  suppress  the  truth,  so  the  free  nations 
are  equipped  by  their  nature  to  discover  and  dis- 
seminate it.  These  great  resources,  implicit  in 
democratic  life,  must  be  utilized  to  the  fullest. 
The  emphasis  placed  in  the  sixth  point  of  Senate 
Resolution  243  on  the  efforts  of  private  American 
citizens  seems  to  me  to  recognize  this  essential 
principle,  and  I  welcome  particularly  this  em- 
phasis on  private  participation.  Governments  can 
do  only  a  very  small  part  of  the  task.  It  is  the 
individual  citizens,  the  private  organizations,  the 
independent  groups,  who  make  the  major  contribu- 
tion to  insuring  that  the  truth  is  known. 

There  has  never  been  a  time  when  men  every- 
where who  value  freedom  had  a  greater  need  to 
know  the  truth. 

Senate  Resolution  243 

Whekeas  the  struggle  now  raging  between  freedom  and 
communism  is  a  contest  for  the  minds  and  loyalties  of 
men ; and 

Whekeas  in  such  a  struggle  force  and  the  threat  of 
force  do  not  change  men's  minds  or  win  their  loyalties  ; 

Whereas  the  real  methods  of  Communist  aggression 
are  incessant  and  skillful  propaganda  designed  to  prepare 
the  way  for  political  Infiltration,  for  sabotage,  and  for 
the  consolidation  of  power  by  suppression  and  terror ;  and 

Whereas  these  tactics  have  poisoned  and  continue  to 
poison  the  minds  of  hundreds  of  millions  throughout  the 
world;  and 

Whereas  we  have  learned  that  such  Communist  meth- 
ods cannot  be  beaten  back  by  arms  and  dollars  alone  but 
require  world-wide  offensive  in  behalf  of  the  ideas  which 
express  our  democratic  principles  and  aspirations :  There- 
fore be  it 

Resolved,  That  the  United  States  should  initiate  and 
vigorously  prosecute  a  greatly  expanded  program  of  in- 
formation and  education  among  all  the  peoples  of  the 
world  to  the  full  extent  that  they  can  be  reached — with  a 
view  to  closing  the  mental  gulf  that  separates  the  United 

States  from  other  peoples  and  that  now  blockades  the 
universal  hope  for  freedom  and  peace ;  be  it  further 

Resolved,  That  it  is  the  sense  of  the  Senate  that  any 
such  program  should  encompass,  among  other  things — 

(1)  maintenance,  through  the  United  Nations  and 
through  our  own  diplomacy,  of  a  steady  and  steadily  in- 
creasing pressure  in  behalf  of  world-wide  freedom  of 
information ; 

(2)  acceleration  of  the  work  of  the  United  Nations 
Educational,  Scientific  and  Cultural  Organization  to  the 
point  where,  with  effective  leadership,  it  has  a  chance  to 
make  a  significant,  perhaps  decisive,  contribution  to 
peace ; 

(3)  development  of  the  activities  of  the  Offices  of 
International  Information  and  Educational  Exchange  in 
the  Department  of  State,  in  the  following  ways  among 
many  others — 

(a)  preparation  and  execution  of  a  comprehensive 
world-wide  program  to  exhibit  documentary  and  educa- 
tional motion  pictures  designed  to  explain  the  democratic 
principles  and  ideals  which  underlie  our  foreign  policy ; 

(b)  significant  and  immediate  expansion  of  our 
program  for  bringing  foreign  students  to  the  United 
States ; 

(c)  creation  of  a  world  broadcasting  network 
capable  of  broadcasting  on  long  wave,  short  wave,  or 
medium  wave,  with  an  ultimate  goal  of  reaching  virtually 
every  radio  set  in  the  world ; 

(d)  use  of  any  and  all  possible  means  to  reach 
people  who  are  shut  off  from  the  free  world  by  censorship 
and  suppression ; 

(4)  promotion  of  democratic  education  abroad,  not- 
ably in  the  occupied  areas  of  Germany  and  Japan ; 

(5)  convening  of  a  conference  of  non-Communist  na- 
tions now  conducting  international  information  programs, 
with  a  view  to  reaching  a  better  understanding  on  com- 
mon themes  and  on  greatly  increasing  the  effectiveness  of 
the  projection  of  such  themes ; 

(6)  encouragement  of  the  establishment  of  a  nongov- 
ernmental agency  to  help  inspire  and  guide  the  efforts  of 
the  millions  of  private  American  citizens  who  might  use 
their  talents  and  resources  and  contacts  overseas  in  fur- 
therance of  the  programs  and  objectives  of  this  resolution, 
and  be  it  further 

Resolved,  That  it  is  the  sense  of  the  Senate  that  the  in- 
ternational propagation  of  the  democratic  creed  be  made 
an  instrument  of  supreme  national  policy — by  the  develop- 
ment of  a  Marshall  plan  in  the  field  of  ideas. 


Department  of  State  Bulletin 

Forging  a  Free  World  With  a  Truth  Campaign 

hy  Edward  W.  Barrett 

Assistant  Secretary  for  Public  Affairs ' 

Since  the  early  1940's,  it  has  been  apparent  to  the 
American  people  that  a  new  era  had  arrived  in 
world  affairs — the  era  of  the  interdependence  of 
nations,  making  international  cooperation  an  im- 

In  order  to  defeat  the  Axis  Powers  in  World 
War  II,  we  discovered  that  we  had  to  pool  our 
physical  and  moral  resources  with  those  of  our 
Allies  and  organize  a  high  command  to  direct  our 
collective  effort.  And  by  reaching  the  minds  of 
the  enemy  peoples,  we  weakened  their  resolution 
and  brought  peace  nearer. 

Along  with  other  free  nations,  we  realized  while 
the  fighting  was  still  going  on  that  voluntary 
collaboration  would  also  be  required  to  deal  with 
the  problems  of  the  postwar  world.  We  agreed 
that  intensive  information  activities  would  be 
needed  to  mobilize  the  support  of  the  peoples  of 
the  world  in  a  determined  effort  to  rebuild  shat- 
tered economies,  to  extend  human  freedoms,  and 
to  avert  a  recurrence  of  war.  We  joined  in  the 
establishment  of  the  United  Nations,  only  to  see 
the  United  Nations — despite  its  great  accomplish- 
ments— deprived  of  the  power  to  safeguard  world 
peace  by  tlie  peculiar  tactics  of  the  Soviet  Union. 
We  found  that  the  struggle  between  tyranny  and 
freedom  was  still  going  on.  The  only  difference 
was  that  the  enemies  of  freedom  were  using  not 
guns  but  threats  of  war,  political  and  economic 
pressures  on  weaker  countries,  and  the  subversive 
activities  of  fifth  columnists  in  every  land,  in- 
cluding our  own. 

I  doubt  very  much  whether  the  United  States 
has  ever  faced  a  more  difficult  and  perilous  world 
situation  than  now,  even  allowing  for  the  events 
in  recent  weeks  which  have  signalized  a  forward 
leap  in  the  collective  strength  of  the  free  nations 
at  the  expense  of  Soviet  imperialist  ambitions. 

'  An  address  made  at  Bard  College,  Annandale-on-Hud- 
son,  N.y.,  on  June  17  and  released  to  the  press  on  the  same 

The  world  situation  is  still  precarious.  This  is  no 
time  to  be  baselessly  undermining  public  confi- 
dence in  those  to  whom  the  all-important  conduct 
of  our  foreign  policy  is  entrusted. 

But,  unfortunately,  we  still  have  with  us  those 
who  are  perfectly  willing  to  undermine  confidence 
in  the  United  States  at  home  and  abroad  for  cheap 
political  reasons,  who  do  not  hesitate  to  make  loose 
charges  first  and  search  for  evidence  later,  who 
resort  to  reckless  smear  tactics.  However,  it  is 
heartening  to  know  that  at  Washington  there  are 
many,  many  more  men  of  both  parties  who  have 
submerged  political  rivalries  in  the  field  of  foreign 
affairs — men,  for  example,  like  Herbert  Lehman 
and  John  Foster  Dulles,  to  cite  but  two  from  this 
State.  Such  men  are  working  devotedly,  and 
without  headlines,  to  strengthen  their  Govern- 
ment in  the  international  field,  to  help  their  Gov- 
ernment in  the  difficult  job  of  eliminating  any 
possible  security  risks,  and  to  help  devise  ever 
stronger  international  policies  for  their  Govern- 
ment. We  should  bow  to  such  fine  decent  public 
servants  who  realize  there  is  a  limit  to  politics. 
It  is  because  of  them  that  the  damage  done  by 
selfish  irresponsibles  is  now  being  repaired.  The 
passage  by  the  Congress  of  the  full  foreign  aid 
bill  while  Secretary  Acheson  was  in  Europe,  for 
the  recent  London  meetings,  gave  an  impressive 
demonstration  that  a  unified  Am'^rica  is  still  back- 
ing up  a  consistent  line  of  policy.  The  strong  pleas 
by  leaders  of  both  of  our  major  political  parties 
for  increased  two-party  collaboration  in  the  mak- 
ing and  the  carrying  out  of  our  policy  has  also 
had  a  salutary  effect  at  home  and  abroad.  The 
signs  point  clearly  now  to  a  renewed,  indeed  inten- 
sified, bipartisan  policy,  enabling  us  to  cooperate 
with  our  friends  abroad  to  even  better  effect. 

Building  a  Community  of  Free  Nations 

Certainly  there  is  no  mistaking  either  the  need 
for  the  closer  association  of  the  Atlantic  pact  na- 

Jo/y   J  7,  J  950 


tions  or  the  real  progress  that  is  being  made  in 
that  direction.  The  agreements  reached  by  the 
North  Atlantic  Treaty  Council  at  London  show 
that  the  powerful  democracies  of  this  Atlantic  area 
are  forging  a  true  community  of  free  nations. 
Through  the  increasing  coordination  of  their  mili- 
tary, moral,  economic,  and  political  strength,  they 
are  reducing  the  likelihood  of  war  and  bringing 
nearer  the  day  when  at  least  the  majority  of  the 
world's  peoples  can  realize  the  goals  of  the  United 
Nations  Charter. 

So  far  as  it  is  within  our  power  to  prevent  them, 
there  are  two  things  that  we  must  not  allow  to 
occur — that  is,  for  the  industrial  complex  of  West- 
ern Europe  to  fall  into  the  grip  of  the  Soviet  Union 
or  for  any  more  of  the  potentially  great  nations  of 
Asia  and  the  Far  East  to  suffer  that  fate.  If  either 
happened,  our  hopes  for  a  free  world  society  would 
be  set  back.  If  both  happened,  so  far  as  we  were 
concerned,  the  ballgame  would  be  oyer. 

Those  two  eventualities  are  precisely  what  the 
Soviet  Union  is  aiming  for,  and  precisely  what  we 
and  our  friends  are  determined  shall  not  take 

There  is  no  need  for  me  to  review  now  the  vig- 
orous actions  which  we  are  taking  in  concert  with 
the  nations  of  Western  Europe  to  shatter  the  So- 
viet ambitions.  AVe  believe  we  can  make  Soviet 
aggression  too  hazardous  to  be  risked.  We  seek 
to  render  Soviet  subversion  ineffective  by  building 
up  economic,  social,  and  political  stability. 

In  the  Far  East  and  Asia,  as  you  know,  we  have 
respected  and  supported  movements  toward  na- 
tional independence.  We  encourage  emerging  new 
nations  to  prove  to  themselves  that  only  democ- 
racy— in  the  words  of  Nehru — can  "deliver  the 
goods,  materially  and  spiritually,"  and  by  direct 
aid,  support  their  efforts  toward  advancement. 
Now  that  Cliina  has  fallen  under  the  control  of 
Moscow,  an  already  delicate  political  situation  has 
worsened.  We  must  act  wisely  and  firmly  in  help- 
ing to  prevent  the  further  spread  of  communism 
among  the  Asian  millions.  As  a  newcomer  in  gov- 
ernment, I  feel  we  are  doing  so. 

In  Europe,  in  Asia,  and  the  Far  East,  in  other 
world  areas,  we  must  continue  to  act  positively 
wherever  freedom  is  in  danger  for  our  own  free- 
dom is  at  stake. 

Truth  as  a  Tool  f  r  Freedom 

I  am  especially  concerned  with  the  positive  ac- 
tion of  supplying  truth  and  promoting  mutual  un- 
derstanding. My  job,  in  the  State  Department, 
is  to  see  that  we  do  not  neglect  the  vitally  impor- 
tant factor  of  world  public  opinion  in  our  interna- 
tional relations.  The  description  of  1;he  so-called 
"cold  war"  as  a  contest  to  win  the  minds  of  men 
has  been  worked  to  death,  but  it  remains  a  decisive 
guidepost  for  shaping  our  policies  and  actions. 

In  his  recent  address  to  the  American  Society  of 
] .ewspaper  Editors,  President  Truman  cut  to  the 
]  eart  of  the  matter.    He  said: 

The  cause  of  freedom  is  being  challenged  throughout  the 
world  today  by  the  forces  of  imperialist  communism.  .  .  . 
Deceit,  distortion,  and  lies  are  systematically  used  by  them 
as  a  matter  of  deliberate  policy.  .  .  . 

We  cannot  run  the  risk  that  nations  may  be  lost  to  the 
cause  of  freedom  because  their  people  do  not  know  the 

It  is  hard  for  me  to  conceive  that  anyone  in  this 
day  could  question  the  need  for  us  to  reach  into 
every  nation  in  the  world  with  a  barrage  of  truth- 
ful information  about  the  kind  of  people  we  are, 
how  we  really  live,  and  what  our  intentions  are 
toward  other  peoples.  It  is  surely  self-evident 
tliat  we  must  make  the  citizens  of  other  free  na- 
tions understand  that  we  have  a  real  community  of 
interests  and  that  we  must  pull  together  if  we 
are  to  have  a  world  in  which  a  decent  kind  of  life 
is  possible. 

It  may  sound  dry  as  dust  to  us,  but  the  clear 
explanation  of  United  States  foreign  policy  and 
the  views  of  our  leading  statesmen  and  of  the 
American  people  on  the  world  situation  are  of  the 
liveliest  interest  to  people  abroad.  The  more  we 
reach  people  abroad  with  that  kind  of  factual  in- 
formation, the  better  our  prospects  of  pulling  to- 
gether in  the  common  cause  of  freedorn.  We  are 
building  mutual  trust  and  understanding  on  the 
only  basis  on  which  they  can  be  built — that  of 
knowledge  of  the  facts  as  they  exist.  Any  man 
who  really  knows  what  is  going  on  is  a  long  way 
toward  knowing  what  to  do  about  it. 

The  power  of  the  simple,  unadulterated  truth  is 
precisely  our  answer  to  the  distortions  of  Com- 
mimist  propaganda,  and  I,  for  one,  am  confident 
that  if  we  hit  with  the  truth  hard  enough,  long 
enough,  and  on  a  sufficient  scale — and  that  means 
no  less  than  a  world-wide  scale — we  can  make  the 
Communist  propaganda  start  backfiring  not  only 
outside  the  Iron  Curtain  but  inside  it  as  well.  I 
do  not  want  to  make  it  sound  easy ;  it  is  not.  It  is 
a  terrific  and  arduous  job,  but  it  is  one  that  we 
must  get  done — through  both  public  and  private 

I  believe  that  we  must  intensify  greatly  our  ef- 
forts along  these  lines.  In  the  Department  of 
State,  we  are  now  completing  a  thorough  study 
and  analysis  of  the  complete  range  of  our  infor- 
mational, educational,  and  cultural  exchange  pro- 
grams to  appraise  the  results  we  are  getting  and 
to  discover  ways  of  getting  better  results.  We 
are  very  eager  to  measure  up  to  what  the  Presi- 
dent recently  described  as  the  need  for  a  great 
new  "campaign  of  truth." 

Meanwhile,  we  have  encouraging  evidence  that 
we  are  accomj^lishing  something  very  wortliwhile 
in  what  we  are  now  doing  through  the  world-wide 
broadcasts  of  the  Voice  of  America,  the  daily 
Morse  code  transmission  of  official  texts  and  in- 
formation to  missions  abroad  for  public  release, 
tlie  showing  of  documentary  films  and  photo- 
graphic displays,  the  services  of  libraries  and  in- 
formation centers  open  to  the  general  public,  the 
legwork  of  public  affairs  and  information  and 


Department  of  State  BuUefin 

cultural  officers  of  the  Foreign  Service,  and  our 
practice  of  bringing  students,  teachers,  laborers, 
and  jirofessional  people  to  the  United  States  so 
and  they  can  go  back  home  with  first-hand  infor- 
mation about  American  democracy. 

Very  briefly,  I  would  like  to  give  3'ou  a  few 
highlights  which  will  suggest  the  promise  this 
type  of  activity  offers. 

The  radio  Voice  of  America  is  now  operating  on 
a  24-hour  schedule,  with  a  total  of  70  daily  pro- 
gi-ams  in  24  languages.  About  30,000  words  are 
beamed  out  daily  in  news  reports,  commentaries 
and  news  analyses,  and  features  on  American  life. 
It  is  impossible  to  be  accurate  about  how  many 
people  we  are  reaching  with  this  international 
radio  network,  but  we  estimate  our  potential  listen- 
ing audience  at  300  million  people.  We  do  have 
one  solid  basis  of  measurement — letters  from 
listeners.  In  1949,  excluding  the  Iron  Curtain 
countries,  the  Voice  received  from  abroad  around 
10,000  letters  a  month.  The  number  has  now  in- 
creased to  a  monthly  rate  of  25,00.  I  think  that  is 
impressive  evidence  of  the  impact  which  the  Voice 
is  making. 

A  German  recently  wrote  the  Voice  in  colorful 
English  as  follows: 

Having  just  returned  from  Russian  captivity,  I  wish 
to  inform  you  tliat  I  have  experienced  in  Russia  that  your 
transmissions  in  Russian  language  are  paid  attention  to 
and  that  the  Russians  lUje  very  much  to  listen  in  for  them. 

Even  the  officials  of  the  Slinistry  of  National  Security 
occupied  in  our  camps  sent  off  the  prisoners  of  war  whom 
they  were  trying  at  9  o'cloclv  in  order  to  hear  the  Voice  of 
America.  Next  day  the  party  men  of  course  assured  one 
another  that  it  was  a  big  twaddle  what  they  had  told  on 
the  Voice  of  America — but  they  heard  it  every  one ! 

From  many  sources,  we  are  able  to  piece  together 
bits  of  information  which  add  up  to  this:  That 
we  are  still  reaching  a  hard  core — a  substantial 
core — of  listeners  in  the  Soviet  Union.  There  are 
many  Russian  citizens  whose  experience  in  slave 
labor  camps  and  the  like  have  left  them  with  little 
fondness  for  the  Communist  dictatorship.  We 
are  reaching  them  with  the  truth  about  what  is 
going  on  in  the  outside  world,  and  I  think  it  is 
most  unlikely  that  what  they  are  learning  stops 
with  them.  They  are  surely  passing  it  on  through 
the  grapevine  to  be  found  in  any  land  smothered 
by  oppression  and  denied  access  to  news  of  the 
outside  world.  There  is  always  a  great  hunger 
for  news  where  it  has  been  arbitrarily  cut  off.  This 
is  our  opportunity  to  keep  alive,  even  in  Russia, 
the  possibility  of  ultimate  cooperation  between 
our  people  and  a  free  Russian  people.  Meanwhile, 
the  more  we  reach  the  Russian  people  with  honest 
news,  the  more  we  force  the  Russian  dictators  to 
beware  of  an  explosion  within  if  they  step  too  far 
in  their  adventures  abroad. 

Soviet  Reaction 

Probably  the  best  measure  of  the  impact  of  the 
Voice  is  the  case  of  jitters  it  seems  to  have  instilled 

in  the  men  in  the  Kremlin.  As  you  know,  the 
wholesale  Russian  jamming  operation  which  began 
April  24, 1949,  is  still  going  on  24  hours  a  day.  In 
devoting  several  hundred  Soviet  transmitters  to 
this  jamming  operation,  the  Soviet  Government 
is  spending  more  money  to  keep  our  broadcasts 
out  than  we  are  spending  on  our  entire  world-wide 
Voice  operations.  You  know,  too,  that  we  have 
long  had  engineers  devising  methods  of  breaking 
through  the  jamming.  That  costs  money,  and  the 
Congress  voted  it — 11.5  million  dollars.  We  are 
now  getting  through  the  jamming  on  a  scale  which 
is  still  less  than  can  satisfy  us  but  is  enough  to 
keep  the  Soviet  rulers  acutely  uncomfortable.  We 
mean  to  make  them  more  so.  I  can  now  announce 
that,  as  a  result  of  recent  frantic  Russian  attempts 
to  shut  us  out  of  Czechoslovakia,  we  are  today 
doubling  our  Voice  of  America  output  in  the  Czech 
and  Slovak  languages.  We  shall  not  let  them  shut 
out  the  truth  as  long  as  we  can  help  it.  The  more 
we  can  keep  the  Russian  bear  busy  scratching  his 
own  fleas,  the  less  likely  he  is  to  molest  the  rest  of 
the  world. 

The  jamming  of  the  Voice  is  by  no  means  the 
only  evidence  of  the  fear  of  all  the  Iron  Curtain 
governments  of  having  their  peoples  reached  by 
truthful  information.  Hungary,  Bulgaria,  Czech- 
oslovakia, and  Communist  China  have  adopted 
oppressive  tactics  to  prevent  people  from  listening 
to  our  broadcasts,  such  as  heavy  fines,  imprison- 
ment, and  confiscation  of  the  radios  of  those  caught 
listening.  For  an  extreme  example,  on  April  22, 
1950,  a  Hungarian  court  at  Gyor  sentenced  Agos- 
ton  Rohring,  Jr.,  t6  death  on  charges  of  hiding 
arms  and  of  listening — in  the  words  of  the  court 
"to  the  United  States  imperialistic  radio  which 
incites  to  war."  Nevertheless,  a  Hungarian-born 
United  States  citizen,  who  returned  March  27 
from  a  visit  in  Hungary,  said  he  did  not  speak  with 
anyone  who  did  not  eagerly  await  the  daily  VOA 
broadcast,  despite  the  severe  punislunent  they 
would  face  if  detected. 

We  are  now  witnessing  a  systematic  campaign 
to  black-out  our  information  activities  entirely  in 
the  Iron  Curtain  countries.  Most  of  our  informa- 
tion centers  have  been  shut  down  in  the  Iron  Cur- 
tain countries  or  so  cramped  by  Governmental 
edicts  as  to  render  them  practically  useless.  The 
Iron  Curtain  is  seeking  daily  to  increase  the  isola- 
tion of  the  peoples  within  from  any  and  all  healthy 
contacts  with  the  outer  world.  This  development 
points  all  the  more  emphatically  to  the  importance 
of  the  Voice  broadcasts  and  the  value  of  increasing 
its  power.  Foy  Kohler,  who  returned  last  year 
from  long  duty  in  Moscow  to  head  up  the  Voice, 
said  recently  that  he  would  like  to  see  an  expanded 
Voice  of  America  which  could  reach  loud  and  clear 
throughout  the  world  in  all  languages.  I  go  along 
with  him  in  that,  and  I  agree  that  it  would  be 
worth  to  us  every  cent  it  would  cost.  That  cost, 
incidentallj^,  would  amount  annually  to  about  the 
cost  of  6  minutes  of  the  kind  of  shooting  war  which 
we  financed  in  World  War  II. 

July   17,    7950 


other  Measures  of  Strength 

I  would  like  to  highlight  another  way  in  which 
we  are  cultivating  understanding  between  our- 
selves and  other  peoples  and  correcting  miscon- 
ceptions about  the  American  people  and  our  way 
of  life  which  are  circulated  abroad.  I  refer  to  our 
educational  exchange  and  exchange  of  persons  pro- 
grams, under  which  we  bring  to  this  country  a 
great  number  of  foreign  teachers,  officials,  editors, 
industrialists,  labor  leaders,  students,  and  people 
from  other  walks  of  life.  We  welcome  every  op- 
portunity to  enable  these  visitors  to  move  freely 
among  us,  to  work  and  study  with  us,  to  see  the  bad 
with  the  good,  and  then  go  back  to  their  own  lands 
to  i-eport  on  what  they  have  seen  and  learned.  I 
would  like  to  see  this  program  expanded  until  we 
had  a  stream  of  visitors  from  every  country  in  the 
world.  As  an  illustration  of  the  importance  of 
this  activity,  there  are  now  5,000  Chinese  students 
studying  in  American  schools  and  universities  and 
learning  about  us  while  living  among  us.  Most  of 
them  will  probably  go  back  to  China,  where  they 
can  potentially  serve  as  a  potent  corrective  to  the 
attacks  now  being  made  on  us  by  the  Communist 
regime.  I  ask  you  to  ask  yourselves  only  one 
question :  What  would  we  not  give  to  have  an  equal 
number  of  Soviet  students  live  among  us  and  then 
go  back  to  their  own  land  to  report  on  what  they 
had  seen  ? 

The  simple,  unadulterated  truth  that  we  are 

trying  to  get  across  to  the  citizens  of  other  coun- 
tries is  that  the  United  States  is  pursuing  a  gen- 
uine policy  of  peace.  We  are  spending  billions 
and  sending  thousands  of  our  ablest  people  abroad 
to  assist  other  nations  in  solving  their  difficulties, 
so  that  they  may  join  their  growing  strength  with 
ours  in  creating  a  world  free  of  war,  free  of  polit- 
ical oppression,  and  free  of  economic  or  any  other 
foi'm  of  human  slavery.  As  a  result  of  what  we 
and  other  free  nations  are  accomplishing  together, 
we  are  beginning  to  see  new  horizons  in  interna- 
tional understanding,  the  light  of  the  day  in  which 
the  peoples  of  the  world  will  have  what  they 
want — a  world  in  which  the  diversity  of  human 
skills  and  the  force  of  human  energies  can  be  con- 
centrated on  lifting  standards  of  living,  materially 
and  spiritually,  throughout  civilization. 

I  think  that  there  is  no  higher  purpose  to  which 
you  could  give  your  support.  As  American  citi- 
zens, you  have  the  opportunity  to  make  your  in- 
fluence felt  by  supporting  these  ultimate  aims  of 
American  policy.  We  cannot  remind  ourselves 
too  often  that  the  Voice  of  America  is  the  collec- 
tive voice  of  this  nation.  You  are  a  part  of  that 

We  can  eventually  forge  a  world  of  decency,  of 
freedom,  and  of  peace  if  we  push  ahead,  if  we 
boldly  use  the  great  weapons  of  economics  and 
truth  at  our  command — and  if  we  keep  our  heads 
and  use  our  heads. 

Analysis  of  Senator  McCarthy's  Public  Statements 


The  Deportment  of  State  on  June  17  made  public^  the 
following  analysis  of  some  of  the  factual  inaccuracies  in 
the  speech  delivered  hy  Senator  McCarthy  at  Milirnukee, 
Wisconsin,  to  the  Reputjlican  State  Convention  of  'Wiscon- 
sin on  June  9,  1950. 

Several  misstatements  which  Senator  McCarthy 
made  at  Milwaukee,  he  has  repeated  since  in  his 
speech  of  June  15  at  New  London,  Connecticut,  to 
the  convention  of  the  National  Editorial  Associa- 
tion. In  particular,  he  repeated  at  New  London 
the  first  misstatement  dealt  with  here — Senator 
McCarthy's  perversion  of  the  record  of  Secretary 
Acheson's  position  in  the  matter  of  the  loan  to 
Poland.  The  actual  record  of  the  Senate  Commit- 
tee which  explored  this  matter  is  set  forth  in  this 
release.  He  has  also  since  repeated  his  asser- 
tions— which  are  here  once  again  shown  false — 
about  United  States  policy  with  regard  to  Poland 
and  China  and  about  State  Department  files. 

'  Department  of  State  press  release  648. 

1.  SENATOR  McCarthy  said:  Prom  October  1945, 
to  March  of  1947,  Acheson's  law  firm  was  retained  by 
the  Communist  government  of  Poland  to  obtain  a  90  mil- 
lion-dollar loan  from  the  United  States.  The  loan  was 
put  through  and  Acheson's  firm  received  a  fee  of  over  50 
thousand  dollars,  according  to  Acheson's  sworn  testimony. 
During  this  time,  Acheson  was  Assistant  Secretary.  .  .  . 
He  admitted  in  January  1949,  that  he  was  charged  with 
responsibility  of  making  that  loan  !  Fifty  million  of  that 
90  million  went  to  equip  and  arm  the  Communist  army 
and  the  dreaded  .  .  .  Communist  secret  police  ...  It 
was  Mr.  Acheson  who  placed  the  guns,  the  whips,  the  black- 
snakes,  and  the  clubs  in  the  hands  of  those  Communists, 
[and]  .  .  .  who  furnished  them  with  bullets  to  keep  a 
Christian  population  under  Soviet  discipline  .  .  . 

The  Facts  :  This  charge,  with  its  innuendoes,  is 
utterly  false  and  based  on  a  deliberate  distortion  of 
the  public  record.  The  circumstances  of  the  loan 
to  Poland  were  carefully  scrutinized  by  the  Senate 
Committee  on  Foreign  Relations  in  January  1949, 
prior  to  the  confirmation  of  Mr.  Acheson's  nomi- 

Deparfment  of  State  Bulletin 

nation  as  Secretary  of  State.  The  Committee's 
hearings  establislied  that  Mr.  Acheson  had  severed 
all  connections  with  his  former  law  firm  5  years 
before  the  Polish  loan  wns  approved  by  the  De- 
partment of  State;  that  he  acted  on  the  loan  only 
after  it  had  been  recommended  by  the  various  divi- 
sions of  the  Department,  including  Will  Clayton's 
economic  divisions  and  the  political  divisions ;  and 
that  the  Department,  at  that  time,  still  had  hopes 
that  the  Mikolajczyk  government,  then  in  power 
in  Poland,  might  be  saved  from  Russian  domina- 

Any  person  really  desiring  the  facts  would  care- 
fully have  examined  the  record  of  the  Committee 
on  Foreign  Relations.  The  entire  published  record 
of  this  Committee's  hearings  dealing  with  this 
question  is  set  forth  below: 

The  Chairman:  There  have  been  charges  over  the  radio 
that  there  was  some  activity  by  that  firm  [Covington,  Bur- 
lin.u',  iiublee,  Achesoa  &  Sliorb]  with  regard  to  a  Polish 
loan  while  you  were  in  the  State  Department.  Can  you 
tell  us  about  that? 

Mr.  Acheson:  Yes,  Mr.  Chairman.  I  shall  be  glad  to  do 

The  Chairman:  I  assume,  of  course,  that  while  you 
were  in  the  State  Department  you  had  severed  your 
relationships  with  the  firm  as  far  as  the  receipt  of  any 
iwrtion  of  their  revenues  as  compensation. 

iff.  Acheson:  On  the  1st  of  February  1945  [subsequently 
corrected  to  February  1,  1941],  when  I  took  the  oath  as 
Assistant  Secretary  of  State,  I  severed  all  connection  of 
any  sort  with  my  tirm.  The  interest  which  I  had  in  it  was 
valued,  computed,  and  paid  to  me  by  the  firm,  and  I  had 
no  further  connection  with  it  until  I  returned  to  private 
practice  on  July  1,  1947. 

The  Chairman:  Was  your  name  dropped  from  the  firm? 

Mr.  Acheson:  My  name  was  not  dropped  from  the  title 
of  the  firm.  It  was  dropped  from  the  list  of  partners  who 
were  connected  with  the  firm.  The  name  and  style  of 
the  firm  remained  the  same. 

The  Chairman:  Like  many  firms,  they  wanted  the  firm 
name  to  go  on,  as  I  understand. 

Mr.  Acheson:  That  was  the  desire  of  my  partners,  a 
desire  in  which  I  acquiesced. 

I'he  Chairman:  But  on  the  list  of  attorneys  in  the  firm, 
your  name  was  not  included? 

Mr.  Acheson:    Certainly  not. 

Senator  Wiley:  You  had  no  financial  interest  in  it? 

Mr.  Acheson:  No,  sir. 

The  Chairman:  You  were  starting  to  tell  us  about  the 
charge  with  respect  to  the  Polish  loan  in  which  your 
firm,  while  you  were  in  oflice,  had  some  unusual  inter- 
est.   Tell  us  about  that. 

Mr.  Acheson:  This  matter,  Mr.  Chairman,  was  a  matter 
which  was  begun  and  finished  at  a  time  when  I  had  no 
connection  with  the  firm  whatever.  In  October  1945,  the 
Polish  Supply  Mission  employed  the  senior  partner  of 
that  firm,  Mr.  Edward  B.  Burling,  and  some  of  his  asso- 
ciates, to  work  with  that  Supply  Mission  in  the  drafting 
of  contracts,  papers,  and  so  forth,  having  to  do  with  a 
loan  which  the  Supply  Mission  wished  to  make  with  the 
Export-Import  Bank.     That  work  continued  from  Octo- 

ber 1945  until  March  1947.  It  consisted  In  drawing  up 
in  legal  form  various  conditions  which  were  to  be  imposed 
to  the  granting  of  that  loan.  After  the  loan  was  granted 
and  approved  by  the  Export-Import  Bank,  there  were 
various  legal  documents  having  to  do  with  the  nature  of 
the  payment  and  repayment,  in  which  the  firm  assisted. 
After  the  loan  began  to  be  paid  out,  there  were  contracts 
which  were  made  between  the  Polish  Supply  Mission  and 
various  suppliers  in  the  United  States.  The  firm  assisted 
in  that  matter. 

In  March  1947,  after  the  President  of  the  United  States 
made  a  strong  statement  of  disapproval  of  the  activities 
of  the  Polish  Government,  the  firm  notified  the  Polish 
Supply  Mission  that  they  were  no  longer  at  its  service. 

It  has  been  stated  somewhat  extravagantly  that  the 
firm  received  in  the  neighborhood  of  a  million  dollars  for 
its  services.  Its  services  for  the  period  October  1945  to 
March  1947  were  paid  for  on  the  basis  of  the  time  of 
the  various  people  engaged  in  it,  and  the  total  fee  was 
50,175  dollars. 

The  Chairman:  And  not  a  million? 

Mr.  Acheson:  No,  sir ;  it  was  not  that. 

I  think  it  would  be  appropriate  at  this  point,  in  view 
of  the  charges  that  I  had  something  to  do  with  the  grant- 
ing of  this  loan,  which  was  of  benefit  to  a  firm  with  which 
I  had  been  connected,  to  state  the  facts  in  regard  to  that 
matter.  The  Polish  Supply  Mission  and  the  Polish  Gov- 
ernment approached  the  United  States  in  1945  for  two 
credits.  One  was  a  credit  of  40  million  dollars  to  be 
used  for  the  purchase  of  coal  cars.  The  other  was  a 
credit  of  50  million  dollars  to  be  used  for  the  purchase 
of  surplus  supplies  owned  by  the  United  States  and  located 
in  Europe.  The  matter  of  this  loan  was  discussed  in  the 
State  Department  for  sometime  and  was  also  discussed 
with  the  Secretary  of  State,  who  was  in  Europe.  It  was 
discussed  in  1945  and  1946. 

On  April  24,  1946,  at  a  time  when  I  was  Acting  Secre- 
tary of  State,  the  various  divisions  of  the  State  Depart- 
ment, including  the  economic  ones  under  Mr.  Clayton 
and  the  political  ones  under  the  political  ofiicers,  recom- 
mended that  these  credits  should  be  granted  on  certain 
conditions.  That  recommendation  was  approved  by  me, 
and  on  April  24,  1946,  a  release  was  given  stating  what 
the  conditions  were  and  stating  an  exchange  of  notes 
between  the  Polish  Government  and  the  Government  of 
the  United  States. 

Subsequently,  some  of  the  conditions  imposed  were,  in 
the  opinion  of  the  Government  of  the  United  States,  not 
fulfilled  by  the  Government  of  Poland,  and  again,  as 
Acting  Secretary  of  State,  I  suspended  the  loan  until 
those  conditions  were  met. 

A  matter  which  was  not  stated  as  a  condition  of  the 
loan,  but  was  a  consideration  which  entered  into  the 
making  of  it,  was  that  there  should  be  free  elections  in 
Poland.  Those  elections  were  held.  They  were  not  re- 
garded by  the  State  Department  or  by  the  President 
of  the  United  States  as  free  elections.  The  President 
made  a  statement  on  that  subject,  and  so  did  I.  How- 
ever, since  this  matter  was  not  a  condition  to  the  loan, 
the  loan  was  not  again  suspended. 

The  consideration  which  led  to  the  granting  of  40  mil- 
lion dollars  for  the  purchase  of  coal  cars  was  the  great 
necessity  of  supplying  Polish   coal   to   western   Europe. 

iu\Y  17,  1950 


That  coal  is  now  being  supplied  in  very  substantial  quan- 
tities with  the  use  of  these  cars. 

The  Chairman:  May  I  ask  you  one  question :  Did  your 
former  firm  have  any  relation  whatever  to  the  policy 
matters  that  were  determined  or  was  it  purely  a  legal 
arrangement  about  these  contracts  and  drafting  of  the 
instruments  that  were  necessary  to  bring  about  the  loan? 

Mr.  Achcson:  It  was  purely  a  legal  matter,  Mr.  Chair- 
man. The  firm  had  nothing  to  do  with  the  question  of 
whether  or  not  the  loan  should  be  granted. 

The  Chairman:  That  is  what  I  had  in  mind. 

Senator  Vandenhcrg:  At  that  point,  Mr.  Acheson,  was 
it  the  policy  of  the  Government  to  make  the  loans  sub- 
ject to  these  suspensions  and  reservations  that  you  have 

Mr.  Acheson:  That  was  correct.  Senator  Vandenberg. 

Senator  Vandenberg:  Would  be  the  instructions 
also  to  our  Ambassador  at  Warsaw? 

Mr.  Acheson:  I  do  not  think  I  understand  that  question. 

Senator  Yandenl)crg:  To  come  right  down  to  the  bare 
bones  of  it,  why  would  there  then  be  a  dispute,  or  an 
alleged  dispute,  between  the  American  Ambassador  at 
Warsaw,  in  respect  to  this  thing  and  our  representatives 
in  Paris? 

Mr.  Acheson:  There  was  throughout  the  consideration 
of  this  loan  a  difference  of  opinion  between  the  American 
Ambassador  in  Warsaw  and  the  officers  of  the  State 
Department,  including  the  Secretary  and  myself,  who  were 
charged  with  responsibility  in  it.  That  was  a  difference 
of  view.  It  was  one  in  which  the  unanimous  opinion  of 
the  officers  of  the  State  Department  was  on  one  side  and 
the  Ambassador  took  a  different  view. 

It  has  been  stated,  and  I  have  seen  it  in  the  press,  that 
the  Ambassador  resigned  on  account  of  this  loan.  That  is 
not  the  fact.  The  loan  was  made  on  the  24th  of  April  1946. 
The  Ambassador  resigned  on  the  31st  of  March  1947. 

Senator  Vandenhcrg:  Was  this  PolLsh  Government, 
which  your  firm  represented  in  this  connection,  what  we 
would  call  a  satellite  government  or  was  it  still  a  govern- 
ment which  pretended — at  least,  through  the  cooperation 
of  Mikolajczyk — to  still  be,  in  pretense  at  least,  a  coalition 

Mr.  Acheson:  It  was  the  latter,  Senator  Vandenberg. 
This  was  the  Mikolajczyk  government,  and  there  was, 
during  that  period,  a  hope  that  it  might  in  some  respects 
be  free  from  complete  Russian  domination. 

Senator  Wiley:  I  want  to  make  an  inquiry.  I  under- 
stand, Mr.  Acheson,  that  you  claim  that  you  yourself, 
personally,  in  no  way  profited  from  this  transaction  that 
your  firm  had ;  that  at  the  time  that  the  firm  was  engaged 
by  the  Government  of  Poland  you  had  no  legal  or  financial 
interest  in  the  firm ;  that  you  had  really  stepped  out  from 
it;  is  that  correct? 

Mr.  Acheson:  That  is  correct.  Senator. 

Senator  Wiley:  And  never  since  have  you  received  any 
remuneration  from  this  transaction? 

Mr.  Acheson:  That  is  correct,  Senator. 

Senator  Smith:  Mr.  Chairman,  might  I  ask  another 
question  in  that  connection? 

The  Chairman:    Yes. 

Senator  Smith:  Mr.  Acheson,  I  understood  you  to  say 
that  in  February  1945,  when  you  became  Under  Secretary 

of  State,  you  severed  your  connection  with  the  firm.  I  also 
understood  you  to  say  that  prior  to  that  time,  in  1944,  if  I 
have  the  figures  correct,  you  were  Assistant  Secretary  of 
State  in  other  matters  in  the  State  Department.  Were 
you  an  active  member  of  your  law  firm  during  that  period? 

Mr.  Acheson:  No,  Senator.  You  misunderstood  me,  I 
think.  What  I  believe  I  said  was  that  on  the  1st  of  Febru- 
ary 1941  I  entered  the  service  of  the  Government.  At  that 
time,  I  severed  all  connection  with  my  firm  and  did  not 
reestablish  any  connection  with  it  whatever  until  July 
1947,  wlien  I  returned  to  private  life. 

Senator  Smith:  Thank  you.  That  is  what  I  wanted  to 
bring  out.     I  was  not  quite  clear  about  that. 

Senator  Tydings:  I  think  you  said  in  your  direct  testi- 
mony that  at  one  time  this  loan  was  suspended.  Is  that 

Mr.  Acheson:  That  is  correct.  Senator  Tydings. 

Senator  Tydings:  At  that  time,  was  your  former  law 
firm  still  representing  the  Polish  Government? 

Mr.  Acheson:  Ye.?,  sir;  that  is  correct. 

Senator  Tydings:  Then  it  seems  to  be  an  inference  that 
the  steps  and  your  part  in  the  suspension  of  the  Polish 
loan  were  adverse  to  the  interests  of  your  law  firm.  Is 
that  correct? 

Mr.  Acheson:  That  is  correct.  Senator  Tydings. 

Senator  Tydings:  I  would  like  to  ask  you  now  if  the 
first  name  in  your  firm  does  not  represent  the  name  of  a 
man  who  is  deceased,  Mr.  Harry  Covington. 

Mr.  Acheson:  That  is  true. 

Senator  Tydings:  Isn't  it  a  matter  of  fact  that  when 
a  law  firm  is  organized,  in  a  matter  of  law,  and  any 
member  dies  or  withdraws  from  the  firm,  that  in  the 
nature  of  the  partnership  the  goodwill  of  the  name  itself, 
even  though  a  member  leaves  the  firm,  the  remaining 
partners  can  continue  to  keep  his  name  as  a  part  of  the 

Mr.  Acheson:  That  is  true.  Senator  Tydings.  It  is  a 
very  common  practice. 

Senator  Tydings:  I  think  it  is  supported  by  numerous 
cases  in  the  court. 

Mr.  Acheson:  I  should  believe  so. 

Senator  Tydings:  Where  a  man  leaves  a  law  firm,  the 
remaining  partners  are  entitled  to  the  goodwill  created 
by  the  old  name,  and  in  case  of  death  the  same  thing 
applies.  It  belongs  to  the  partnership  and  not  to  the 
individual  once  the  goodwill  label  is  created.  Is  that 

Mr.  Acheson:  I  believe  so.  I  can't  answer  authorita- 
tively.   I  have  not  looked  it  up. 

Senator  Tydings:  During  the  negotiations  between  the 
State  Department  and  the  Polish  Government  concerning 
this  loan,  did  your  law  partners  at  any  time  talk  to  you 
about  tlie  loan  or  urge  its  rejection,  adoption,  modification, 
or  alteration? 

Mr.  Acheson:  No,  Senator.  I  had  no  conversation  with 
any  of  them  of  any  sort. 

Senator  Tydings:  Then,  when  you  severed  your  con- 
nection with  your  law  firm  as  you  have  stated,  during  the 
time  you  filled  the  Government  position,  none  of  your 
partners  or  associates  in  your  office  in  any  manner,  shape, 
or  form  contacted  you  to  assist  them  in  work  that  was  in 


Department  of  State  Bulletin 

the  office  that  might  also  have  some  connection  in  the 
State  Dopartniont ;  is  that  correct? 

Mr.  Achesoii:  That  is  correct,  Senator. 

As  I  can  recall  it,  and  I  think  my  memory  is  clear,  in 
the  6I2  years  in  which  I  was  in  the  State  Department  I 
had  one  call  from  one  member  of  that  firm  and  that  was 
to  tell  me  that  a  client  that  he  represented,  who  was  an 
exporter  of  materials,  would  like  to  know  whether  the 
State  Department  would  be  pleased  if  that  firm  ceased 
exporting  materials  to  Japan.  I  told  him  that  the  State 
Department  would  indeed  be  pleased  at  that  action  and 
that  action  was  taken,  and  I  believe  that  is  the  only 
conversation  on  any  matter  of  business  which  I  had  with 
any  one  of  my  partners  in  <i\n  years. 

Senator  Tydings:  That  is  all,  Mr.  Chairman. 

Senator  Vandcnberp:  Do  you  think  there  is  any  chance 
for  public  misunderstanding  through  the  retention,  let  us 
say,  of  the  name  of  the  Secretary  of  State  in  the  title  of 
a  law  firm? 

Mr.  Aclicson:  I  should  think  that  there  might  very 
easily  be,  and  it  will  be  my  recommendation  to  my  part- 
ners that  they  would  please  me  very  much,  and  I  think 
serve  themselves,  by  dropping  my  name  from  the  title  of 
the  firm.  [The  firm  name  now  is  Covington,  Burling, 
Rublee,  O'Brian  and  Shorb.] 

2.  SENATOR  MCCARTHY  SAID :  I  pointed  out  to  the 
Senate  4  days  ago  that  some  of  those  men  who  the  FBI 
listed  as  Soviet  agents  are  still  working  in  the  State 
Department  shaping  our  foreign  policy  at  this  very 

The  Facts:  Wliat  Senator  McCarthy  actually 
had  said  to  the  Senate  4  days  before  was  that: 

At  least  three  of  those  listed  as  Communist  agents  by 
the  FBI  3  years  ago  are  still  holding  high  positions  in 
the  State  Department.  .  .  .  Those  names  I  have  checked 
and  I  know  the  persons  are  working  in  the  State  Depart- 
ment. .  .  .  I  .  .  .  have  the  proof  that  those  men  are 
working  in  the  State  Department  as  of  this  very  moment. 

Instead  of  proof,  Senator  McCarthy  now  pro- 
duces a  watered-down  version  of  his  previous 
charge,  which  the  Department  also  refuted  in  its 
statement  of  June  9. 

In  his  speech  to  the  Senate,  Senator  McCarthy 
further  stated  that  the  names  of  the  three  so-called 
"agents"  still  in  the  Department  were  also  among 
the  106  submitted  by  bim  to  the  Tydings  Subcom- 
mittee. In  actuality,  of  a  total  of  20  persons 
hypothesized  on  the  cliart  as  ''agents,"  there  is  only 
one  who — after  thorough  reinvestigation,  includ- 
ing a  full  P"BI  investigation,  and  clearance  uitder 
the  Department's  loyalty  and  security  proce- 
dures— is  still  in  the  employ  of  the  Department. 
That  one  does  not  hold  a  "high  position."  His 
grade  is  GS-9.  Furthermore,  that  one  is  not  on  the 
list  of  106  which  Senator  McCarthy  gave  the  Sub- 

3.  SENATOR  MCCARTHY  SAID:  (immediately  after 
asserting  that  "untouchables"  in  the  State  Department 
were  plotting  the  "Communistic  enslavement  of  the  world" 
and  that  the  Administration  was  protecting  "Communists 

July   17,   1950 

and  traitors  in  Government")  :  As  an  example,  I  would 
like  to  give  you  the  complete  case  proven  on  Dr.  Philip 
Jessup,  the  State  Department's  Amhassador-at-Large.  .  .  . 
This  is  the  man  who,  under  the  guidance  of  Lattimore, 
is  determining  to  a  large  extent  our  Far  Eastern  pol- 
icy. .  .  .  The  documentary  evidence  shows  that  Jessup 
belonged  to  five  organizations  which  had  been  officially 
declared  as  fronts  for  and  doing  the  work  of  the  Commu- 
nist Party  .  .  . 

The  Facts  :  On  the  Senate  floor  on  June  6,  and 
under  the  protection  of  his  Senatorial  immunity, 
Senator  McCarthy  had  gone  even  farther — he  vir- 
tually said  that  Ambassador  Jessup  was  a  member 
of  the  Communist  Party : 

Their  [The  Communist  Party's]  top  aim  was  to  get 
some  of  their  members  on  that  Executive  Committee  [of 
the  Institute  of  Pacific  Relations],  to  control  that.  For 
example,  we  find  Frederick  V.  Field,  we  find  Philip  C. 
Jessup,  and  Harriet  Moore,  a  very  well-known  Commu- 

Ambassador  Jessup,  in  his  testimony  before  the 
Tydings  Subcommittee,  demonstrated  the  com- 
plete falsity  of  Senator  McCarthy's  allegations, 
and  the  Department  has  repeatedly  set  forth  the 
facts — particularly  in  its  analysis,  on  May  28,^  of 
Senator  McCarthy's  May  25  speech  at  Rochester, 
New  York,  and  of  the  various  documents  which 
he  presented  at  that  time  as  "evidence." 

4.  SENATOR  MCCARTHY  SAID:  So  far,  those  who 
object  to  our  methods  in  this  present  fight  have  offered 
as  their  only  alternative  that  we  go  back  to  the  method 
used  for  the  past  16  years  during  which  the  Communists 
have  been  permitted  to  take  control  of  our  State  Depart- 
ment, infiltrate  our  Government,  and  work  with  the  Soviet 
Union  to  accomplish  the  two  major  Russian  aims : 

1.  To  create  a  Red  China ;  and 

2.  To  create  a  Red  Poland. 

The  Facts  :  The  Department  of  State  has  stren- 
uously objected  to  the  methods  adopted  by  Sen- 
ator McCarthy.  The  objection  stems  from  the 
irresponsible  and  destructive  approach  which  the 
Senator  has  seen  fit  to  adopt  in  his  attacks.  The 
Department  has  actively  solicited  constructive 
suggestions  and  criticism  from  the  Congress,  pri- 
vate organizations,  and  individual  citizens  regard- 
ing the  conduct  of  our  foreign  relations,  so  that 
the  policies  of  the  Department  may  be  as  repre- 
sentative of  the  best  thinking  of  the  American 
people  as  possible.  Senator  McCarthy's  repeated 
misstatements  concerning  the  Department  and  its 
policies  obviously  do  not  fall  into  this  category. 

In  Poland,  the  Department  did  everything  in  its 
power  to  bring  about  free  elections  and  the  estab- 
lishment of  an  independent  democratic  govern- 
ment. That  this  effort  so  far  has  been  unsuccess- 
ful is  strictly  attributable  to  the  realities  of  the 
situation  which  Senator  McCarthy  deliberately 
ignores ;  viz.,  the  geographic  proximity  of  Poland 
and  the  Soviet  Union  combined  with  the  political 

'  Bulletin  of  June  19, 1950,  p.  1013. 


blackjack  of  scores  of  Red  divisions  in  and  around 
Polish  territory.  Soviet  intransigence  left  the 
United  States  Government  only  the  alternative  of 
force  which  even  Senator  McCarthy,  under  the 
circumstances,  might  hesitate  to  recommend. 

In  China,  the  United  States  Government  poured 
out  billions  of  dollars  for  economic,  fiscal,  and 
military  assistance  of  the  anti-Communist  forces. 
This  effort  was  frustrated  by  the  fact  that  there 
ultimately  ceased  to  exist  in  China  any  political 
entity  with  the  organic  integrity  and  determina- 
tion to  combat  communism  on  a  scale  which  would 
make  further  support  practical  and  effective. 

5.  SENATOR  MCCARTHY  SAID :  For  nearly  20  years 
we  have  allowed  dilettante  diplomats  to  do  the  "fighting" 
for  us  with  kid  gloves  in  perfumed  drawing  rooms  .  .  . 

The  Facts  :  The  members  of  the  United  States 
Foreign  Service  are  drawn  from  all  States  of  the 
Union  and  from  all  walks  of  life.  Angus  Ward, 
Consul  General  in  China,  for  almost  a  year  im- 
prisoned with  his  staff  of  18  by  the  Chinese 
Communists,  saw  none  of  Senator  McCarthy's 
imaginary  perfumed  drawing  rooms.  He  and 
his  people  suffered  real  hardship  in  real  risk  of 
their  lives.  Departmental  obsei'vers  were  fre- 
quently under  fire  during  the  Greek  civil  war 
and  similarly  exposed  in  the  war  between  the 
Israeli  and  the  Arabs  for  Palestine.  Consul  Gen- 
eral Thomas  Wasson  was  killed  by  a  sniper  at 
Palestine  in  1948.  Officers  assigned  to  certain 
posts  in  Southeast  Asia  are  required  by  Depart- 
mental order  to  carry  firearms  for  their  personal 
protection.  Out  of  some  8,000  officers  in  the 
Foreign  Service,  about  2,000  are  veterans.  Sen- 
ator McCarthy  is  simply  repeating,  here,  frayed 
cliches  based  on  ignorance  or  malice. 

6.  SENATOR  MCCARTHY  SAID:  This  letter  [from 
the  Secretary  of  State  to  Representative  Sabath]  shows 
that  the  Department  insisted  on  hiring  205  individuals 
who  had  been  declared  unfit  ...  by  the  President's  own 
Security  and  Loyalty  Board  ...  I  told  him  [the  Presi- 
dent] I  had  the  names  of  57  individuals  whose  files  would 
indicate  that  they  were  with  Communists  or  loyal  to  the 
Party  ...  My  continual  investigation  has  increased  that 
list  to  81  ...  I  have  given  them  25  more  names,  totaling 
106  ..  .  The  FBI  gave  the  State  Department  a  detailed 
chart  .  .  .  showing  that  there  were  a  total  of  124  ..  . 
2  months  later  106  ..  .  were  still  working  in  the  Depart- 
ment .  .  . 

The  Facts:  At  Wheeling,  West  Virginia,  on 
February  9,  1950,  Senator  McCarthy  asserted  in  a 
Lincoln  Day  address: 

.  .  .  While  I  cannot  take  the  time  to  name  all  the  men 
in  the  State  Department  who  have  been  named  as  active 
members  of  the  Communist  Party  and  members  of  a  spy 
ring,  I  have  here  in  my  hand  a  list  of  205 — a  list  of 
names  that  were  made  known  to  the  Secretary  of  State 
as  being  members  of  the  Communist  Party  and  who 
nevertheless  are  still  working  and  shaping  policy  in 
the  State  Department. 

The  next  day,  he  said  he  had  the  names  of  "57 
card-carrying  members  of  the  Communist  Party" 
allegedly  working  in  the  Department.  Later,  he 
talked  in  terms  of  81  security  risks  of  various 
sorts.  Then,  he  said  he  would  stand  or  fall  on  his 
ability  to  prove  that  there  was  one  "top  espionage 
agent"  in  the  State  Department.  Recently,  he  has 
directed  his  attention  to  the  Civil  Service  clear- 
ances, 7  years  ago,  of  two  Chinese  for  Office  of 
War  Information  employment.  Reverting  to  his 
numbers  game,  he  now  injects  a  new  "106,"  paired 
with  another  big  "3." 

To  date,  Senator  McCarthy  has  utterly  failed 
to  prove  that  there  is  a  single  Communist  or  pro- 
Communist  in  the  State  Depai-tment. 

7.  SENATOR  MCCARTHY  SAID :  He  [President  Tru- 
man] announced  that  he  would  make  available  not  all 
of  the  files,  but  the  loose-leaf,  raped,  and  denuded  State 
Department  files  in  some  of  the  cases — files  which,  ac- 
cording to  a  House  Committee  rejiort  based  on  an  FBI 
survey,  had  been  extensively  tampered  with. 

The  Facts  :  Here,  Senator  McCarthy  dishes  up 
once  again  a  previous  assertion  already  refuted 
by  the  Department — most  recently  in  its  May  25 
analysis^  of  the  Senator's  May  15  speech  in 
Atlantic  City. 

As  the  Department  then  pointed  out,  these  files 
are  now  as  rigidly  controlled,  accurate,  and  com- 
plete as  it  is  possible  to  make  them.  The  files  de- 
livered to  the  Subcommittee  are  complete  files — 
State  Department  reports,  FBI  reports,  interro- 
gations, hearings,  administrative  memoranda, 
even  pencilled  working  papers — everything.  On 
May  10,  when  the  Committee  started  examining 
the  files,  Senator  Tydings  is  quoted  as  having 
said : 

These  81  files  contain  not  only  all  of  the  data  which 
the  State  Department  investigators  have  assembled,  but 
also  all  of  the  loyalty  data  which  the  FBI  has  gathered 
and  referred  to  the  State  Department  and  which  has 
been  made  a  part  of  these  files. 

Thus  the  Committee  will  have  the  complete  record  from 
all  sources  .  .  . 

8.  SENATOR  MCCARTHY  SAID :  It  is  the  Lattimore- 
Acheson  plan  for  Soviet  conquest  of  the  Pacific  .  .  .  This 
is  what  he  [Owen  Lattimore]  says  .  .  .  This  ...  by  the 
architect  of  our  State  Department  Far  Eastern  policy 
.  .  .  Lattimore's  master  plan  .  .  .  bought  lock,  stock  and 
barrel  by  Acheson  .  .  .  The  Lattimore-Acheson  axis 
served  the  purpose  of  the  Kremlin  .  .  . 

The  Facts  :  Both  the  State  Department  and  Mr. 
Lattimore  himself  have  rejaeatedly  reiterated  the 
falsity  of  these  assertions.  Mr.  Lattimore  is  not 
an  employee  of  the  State  Department  and  is  not 
the  "architect"  of  its  Far  Eastern  policy.  Senator 
Tydings  asked  Secretaries  Hull,  Byrnes,  Marshall, 
and  Acheson  *  whether  such  a  characterization  oi 

'  Bulletin  of  June  12, 1950,  p.  968. 
*  Bulletin  of  June  12, 1950,  p.  972. 


Deparfmenf  of  State  Bulletin 

Mr.  Lattimore  was  true  or  false.    They  all  replied 
that  it  was  false. 

9.  SENATOR  MCCARTHY  SAID:  "This  is  the  Ache- 
sou  who  reinstated  and  put  in  charge  of  personnel  in  the 
Far  East,  John  Stewart  Service  .  .  ." 

The  Facts  :  The  following  letters  from  the  then 
Secretary  of  State,  Mr.  James  F.  Byrnes,  and  for- 
mer Undersecretary  Joseph  C.  Grew  clearly  set 
forth  the  circmnstances  of  Mr.  Service's  rein- 
statement to  the  Foreign  Service — by  Secretary 
Byrnes  on  the  reconnnendation  of  the  Foreign 
Service  Personnel  Board: 

August  14,  1945 

My  deak  Mr.  Service  :  I  am  advised  that  the  Grand 
Jury,  after  hearing  the  testimony  of  witnesses,  has  found 
nothing  to  warrant  an  indictment  against  you. 

One  of  the  fundamentals  of  our  democratic  system  is  the 
investigation  by  a  Grand  Jury  of  criminal  charges.  By 
that  process  you  liave  been  cleared. 

T  am  advised  that  at  the  time  of  your  arrest  you  were 
placed  on  leave  of  absence  with  pay.  I  am  happy  to 
approve  the  recommendation  of  the  personnel  board  that 
you  be  returned  to  active  duty.  You  have  now  been 
reassigned  to  duty  in  the  Department  for  important  worlj 
in  connection  with  Far  Eastern  Affairs. 

I  cnngratulate  you  on  tliis  happy  termination  of  your 
ordeal  and  predict  for  you  a  continuance  of  the  splendid 
record  I  am  advised  you  have  maintained  since  first  you 
entered  the  Foreign  Service. 

With  all  good  wishes, 
Sincerely  yours, 

James  F.  Byrnes 

August  14,  1945 

Dear  Service:  The  Secretary  has  just  told  me  of  the 
letter  he  has  written  you  expressing  his  pleasure  at  your 
complete  vindication.  I  just  want  to  add  a  personal  word 
of  my  own. 

When  I  learned,  only  a  few  days  before  your  arrest, 
that  your  name  had  been  coupled  with  thefts  of  official 
documents  I  was  inexpressibly  shoclsed.  Having  known 
you  for  some  time  and  of  the  high  calibre  of  your  work 
I  could  not  believe  that  you  could  be  implicated  in  such 
an  affair.  As  the  Secretary  has  stated,  you  have  been 
completely  cleared  of  any  such  imputation  by  operation 
of  our  democratic  machinery  of  investigation  and  law 

I  am  particularly  pleased  that  you  are  returning  to  duty 
in  the  field  of  your  specialization.  Far  Eastern  Affairs, 
where  you  have  established  an  enviable  record  for  integrity 
and  ability. 

With  all  good  wishes, 
Sincerely  yours, 

Joseph  C.  Grew 

Mr.  Service  has  never  been  in  charge  of  per- 
sonnel in  the  Far  East.     At  the  end  of  1948,  Mr. 

Service  was  assigned  to  the  Department  in  line 
with  the  established  policy  of  rotating  Foreign 
Service  officers  and  bringing  back  to  the  United 
States  those  who,  like  Mr.  Service,  have  spent 
considerable  time  in  the  field.  For  3  months  in 
1949,  Mr.  Service  served  on  the  Foreign  Service 
Selection  Board,  which  includes  public  as  well  as 
governmental  members.  The  Board  recommends 
promotions  throughout  the  Foreign  Service,  but  it 
does  not  deal  with  assignment  and  is  not  in  charge 
of  field  personnel  in  the  Far  East  or  anywhere  else. 
During  the  remainder  of  his  Washington  assign- 
ment, in  1949,  Mr.  Service  served  as  a  special  assist- 
ant in  the  Division  of  Foreign  Service  Personnel 
but  had  nothing  to  do  with  appointments  or  assign- 
ments in  the  Foreign  Service.  He  has  never  been 
in  charge  of  the  Foreign  Service  personnel  in  the 
Far  East. 

10.  SENATOR  McCarthy  said  :  .  .  .  Jessup  was  in 
charge  of  the  publication  of  a  Communist-front  known  as 
the  Institute  of  Pacific  Relations.  This  publication  under 
Jessup  spearheaded  the  Communist  Party  line  and  spewed 
forth  the  Communist  Party  line  perfumed  sewerage  .  .  . 
This  publication  was  supported  by  Communist  money. 
Along  with  the  material  being  furnished  you  are  photo- 
stats of  checks  totaling  $6,000,  all  signed  by  the  self-pro- 
claimed Communist,  Frederick  Vanderbilt  Field. 

The  Facts  :  Once  again — as  it  has  done  follow- 
ing each  of  Senator  McCarthy's  ASNE,  Chicago, 
Atlantic  City,^  and  Rochester  ^  speeches — the  De- 
partment states  these  facts : 

a.  Senator  McCarthy  grossly  exaggerated  Dr. 
Jessup's  relationship  with  Far  Eastern  Survey, 
the  publication  to  which  he  refers,  based  on  the 
single  fact  that,  in  1944,  Dr.  Jessup  sei'ved  on  the 
Research  Advisory  Committee  of  the  American 
Council  of  the  Institute  of  Pacific  Relations. 

b.  As  for  Senator  McCarthy's  charges  and  im- 
plications that  the  Institute  or  its  publication  were 
bought  and  paid  for  by  "Communist  money,"  about 
half  of  the  Institute's  budget  was  met  by  the 
Rockefeller  Foundation  and  the  Carnegie  Corpo- 
ration. Mr.  Field's  contributions  were  only  a  drop 
in  the  bucket  as  compared  witli  the  generous  dona- 
tions of  large  industrial  concerns. 

Senator  McCarthy  in  previous  speeches,  had 
claimed  to  have  "evidence"  of  contributions  from 
Mr.  Field  totaling  $6,500  in  2  years.  Signifi- 
cantly, however,  following  the  Department's  ex- 
posure of  the  fact  that  one  of  the  photostated 
checks  included  in  that  "evidence"  was  payable  not 
to  the  Institute  of  Pacific  Relations  but  to  the 
American  Council  on  Soviet  Relations,  a  totally 
unrelated  organization,  he  now  reduces  his  figure 
to  $6,000. 

"  See  Bulletin  of  June  12,  1950,  p.  963,  966,  96S,  for 

"  Bulletin  of  June  19, 1950,  p.  1012. 

My  77,   7950 


Where  We  Stand  Today 

hy  Francis  H.  Russell 

Director,  Office  of  Public  Affairs  ^ 

It  is  a  good  thing  for  us  to  give  some  attention 
every  once  in  a  while  to  that  famous  bit  of  advice 
of  Daniel  Webster.  "When  the  mariner,"  he  said, 
"has  been  tossed  for  many  days  in  thick 
weather  ...  he  naturally  avails  himself  of  the 
first  pause  in  the  storm  to  take  his  latitude  and 
ascertain  how  far  the  elements  have  driven  him 
from  his  true  course.  Let  us,"  said  Webster,  "im- 
itate this  prudence." 

The  storm  Webster  was  concerned  about  had 
been  a  storm  of  words.  The  American  people  to- 
day are  entitled  to  feel  that  they  know  what  Web- 
ster meant.  In  fact,  we  may  wonder  whether 
Webster  could  possibly  have  had  any  idea  of  what 
a  storm  of  words  can  really  be.  In  a  time  of  the 
nation's  most  pressing  need  for  unity,  vision,  and 
clear-headedness,  the  air  has  been  filled  instead 
with  patently  false  accusations,  trumped-up  sus- 
picion, and  artificial  schisms.  Our  energies  have 
been  diverted  from  the  dangers  that  are  real  to 
bogies  that  are  fictitious. 

But  we  are  beginning  to  emerge  from  this  emo- 
tional and  mental  orgy.  Although  this  impres- 
sion that  we  are  on  the  point  of  enjoying  a  pause 
in  the  storm  may  jirove  wholly  illusory,  it  may 
be  prudent  to  make  believe  there  is  a  jaause  while 
we  try  to  "take  our  latitude"  in  the  real  world 
that  lies  about  us. 

Let  us  first  remind  ourselves  that  in  the  impor- 
tant struggles  of  mankind  victory  has  never  come 
easily  and  at  once.  Always  along  the  way  there 
are  ebbs  and  flows.  If  it  were  a  matter  of  all 
victories  and  no  setbacks,  we  should  not  have  to 
spend  our  concern  on  the  issue. 

I  should  like  to  examine  broadly  this  evening 
how  we  stand  with  respect  to  the  ebb  and  the  flow 
in  the  two  great  tasks  that  today  face  the  people 
of  the  world :  the  first,  of  course,  being  the  task 
of  creating  a  healthy  world  order  with  adequate 
political  instrumentalities  to  make  possible  world 

'  An  nddress  made  at  Radcliffe  College,  Boston,  Mass., 
June  19  and  released  to  the  on  the  same  date. 

peace  and  economic  and  social  progress;  and  the 
second,  the  task  of  protecting  and  advancing  hu- 
man freedom. 

It  is  a  ticklish  business  plotting  broad  trends 
contemporaneously  but  that  is  what  anyone  must 
do  who  wants  to  "take  his  latitude"  and  map  his 

This  plotting  does  not  call  for  a  discourse  on 
the  successes  that  we  have  achieved  in  our  foreign 
policy  during  the  past  half  decade :  the  setting  up 
of  international  institutions  on  a  democratic  pat- 
tern, the  United  Nations  with  its  specialized  agen- 
cies, the  North  Atlantic  Treaty  Organization,  the 
Organization  of  American  States;  the  program 
for  economic  recovery  in  Europe;  the  plans  for 
military  security  of  the  democracies,  and  all  the 
rest.  They  are  firmly  in  the  record.  So  are  the 
obstacles  that  have  been  faced :  inertia,  ancient 
hatreds,  totalitarian  measures  of  aggression. 
Wliat  I  would  like  to  do,  rather,  is  to  examine  two 
or  three  of  the  most  crucial  world  situations  and 
to  point  to  some  recent  developments  that  bear 
on  our  current  reckoning. 

The  Far  East 

The  major  development  in  the  Far  East  has 
been,  of  course,  the  seizure  of  China  by  the  Chinese 

There  is  a  tendency  sometimes  for  Americans 
to  ask  themselves  and  those  who  have  been  most 
immediately  responsible  for  our  policies  in  that 
area,  "Wliat  went  wrong?  Wlio  was  asleep  at  the 
switch  ?  "Wliat  was  it  that  should  have  been  done 
that  was  not  done?"  China  constitutes  a  large 
chunk  of  the  world's  surface,  and  the  people  who 
inhabit  that  area  are  a  sizable  portion  of  the 
world's  population.  The  overrunning  of  that 
area  by  forces  allied  to  the  Kremlin  is,  obviously, 
an  adverse  factor  of  some  magnitude  in  the  cur- 
rent issue  between  totalitarianism  and  democracy. 

It  is  natural  for  people  who  have  been  largely 
preoccupied  with  domestic  jjroblems,  over  which 


Department  of  State  Bulletin 

we  liave  a  larpe  measure  of  control  and  where,  if 
something  goes  wrong,  we  can  pin  the  responsi- 
bility, to  assume  the  same  attitude  toward  prob- 
lems abroad.  But,  obviously,  there  is  a  oasic 
difference.  Since  we  believe  in  the  right  of  each 
people  to  work  out  their  own  way  of  life,  we 
realize,  when  we  stop  to  think  of  it,  that  it  is  not 
and  should  not  be  possible  for  the  people  of  one 
country  to  have  the  final  deteiunination  on  what 
shall  take  place  in  another  country.  We  may^ 
take  a  friendly  interest.  We  may  offer  help.  We 
may  recognize  the  importance  of  what  takes  place 
in  another  country  to  the  cause  of  world  peace 
and  freedom,  but,  in  the  final  analysis,  it  is  for 
the  people  of  each  coimtry  to  determine  whose  help 
they  will  accept,  what  use  they  will  make  of  it, 
and  wliat  leaders  they  will  follow. 

The  Chinese  people  for  more  than  a  generation 
have  been  in  a  mood  of  revolt  against  the  feudal 
system  that  had  prevailed  in  their  country  since 
the  dawn  of  history.  They  knew  that  modern 
methods  of  government  and  modern  technology 
made  possible  a  higher  standard  of  living  than 
they  enjoyed.  For  a  decade,  they  pinned  their 
hopes  for  the  accomplishment  of  their  objective 
of  a  better  life  on  the  Kuomintang.  Gradually, 
however,  the  idea  became  fixed  in  the  minds  of 
the  Chinese  people  that  the  Kuomintang  had 
come  under  the  domination  of  a  small  clique  of 
men  who  had  no  interest  in  the  welfare  of  the 
Chinese  people  as  a  whole  and  that  the  Kuomin- 
tang was  either  unable  or  unwilling  to  make  the 
necessary  changes  in  Chinese  life.  With  the 
spread  of  this  conviction,  support  for  the  regime 

Many  of  the  soldiers  in  the  Nationalist  Army 
merely  laid  down  their  arms  when  they  came  into 
the  presence  of  the  Communist  forces,  because  they 
felt  the  Government  they  were  supposed  to  be 
fighting  for  offered  no  hope  for  them  or  their 
families.  The  Nationalist  Government  was  driven 
farther  and  farther  back  and,  finally,  off  the  main- 
land of  Asia  onto  Formosa. 


There  were  three  things  that  the  United  States 
could  do  to  stem  this  development.  Two  of  them 
she  did.  The  first  was  to  provide  substantial  as- 
sistance to  the  Nationalist  Government  in  the 
form  of  military  equipment,  food  and  other  sup- 
plies, and  funds.  More  than  half  of  the  total  in- 
come of  the  Nationalist  Government,  during  tlie 
4  years  following  the  cessation  of  the  war  with 
Japan,  came  in  tlie  form  of  assistance  from  the 
United  States.  In  all  major  engagements,  the 
Nationalist  Armies  had  a  superiority  in  equip- 
ment over  the  Communist  forces. 

The  second  thing  that  we  could  do,  and  did,  was 
to  send  a  great  American  of  our  time,  one  whose 
integi'ity  and  persuasiveness  are  unexcelled, 
George  Marshall,  in  an  effort  to  convince  the 
Kuomintang  of  the  necessity  of  measures  on  its 

part  to  reestablish  itself  with  the  Chinese  people 
and  to  offer  American  economic  aid  in  any  such 
effort.  General  Marshall  failed  in  this  effort.  It 
can  be  assumed  that  any  other  person  that  coidd 
have  been  sent  would  have  failed  too. 

The  third  thing  that  we  could  have  done,  but 
did  not  do,  was  to  send  American  generals,  Ameri- 
can aviators,  American  soldiers,  to  take  part  in 
the  Chinese  civil  war.  If  we  had  sent  forces  on  a 
sufficient  scale  there  can  be  little  doubt  but  that 
the  Communist  armies  would  have  been  turned 
back — but  with  two  results : 

First,  we  would,  thereby,  have  committed  our 
limited  resources  to  China,  whose  productive 
power  and  strength  from  the  point  of  view  of  in- 
ternational strategy  is  very  small,  at  the  expense 
of  Western  Europe  which  is  second  only  to  the 
United  States  in  its  peacetime  and  wartime 

Secondly,  and  even  more  important,  if  we  had 
sent  American  armed  forces  to  take  part  against 
the  Chinese  Communists,  we  would  have  wound 
up  with  the  resentment  of  the  Chinese  people  who 
would  have  considered  that  we  had  crammed  down 
their  throats  a  government  in  which  they  had  lost 
all  confidence  and  all  respect.  More  tlaan  that, 
we  would  have  incurred  the  resentment  of  other 
hundreds  of  millions  of  people  who  live  on  the 
periphery  of  China.  We  would  have  "won  a 
battle  and  lost  the  campaign"  in  the  effort  to  forge 
ties  of  friendship  between  ourselves  and  the  peo- 
ple of  the  East.  We  could  not  and  we  cannot 
afford  to  make  enemies  of  the  entire  population 
of  the  Far  East  either  in  terms  of  our  current  ob- 
jectives or  in  terms  of  the  long-range  relations 
between  the  peoples  of  that  area  and  the  West. 

The  determination  of  the  Chinese  people  to 
abandon  the  Nationalist  Government,  and  the  re- 
sulting seizure  of  power  by  the  Communists,  is  an 
adverse  development  which  should  not  and  cannot 
be  minimized. 


But  I  said  I  was  going  to  talk  in  terms  of  recent 
developments  and  their  significance  for  the  imme- 
diate future.  The  significant  change  in  the  situa- 
tion in  the  Far  East  is  this : 

Up  to  the  present  time,  we  have  been  attempting 
to  deal  with  a  situation  in  a  country  where  the 
Government  was  losing  the  support  of  the  people, 
disastrously  and  increasingly,  day  by  day.  For 
that  reason,  the  aid  which  we  gave  in  large 
amounts  was  ineffective.  There  was  no  govern- 
ment that  was  representative  of  the  people  with 
whom  the  United  States  could  work  to  preserve 
and  extend  the  freedom  of  the  Chinese  people. 
The  creation  of  such  a  government  was  a  matter 
beyond  the  power  of  the  United  States. 

Now,  however,  the  situation  that  we  face  in  the 
Far  East,  while  still  one  of  great  difficulty,  is  one 
that  has  less  of  the  characteristics  of  a  quagmire. 

July    17,    1950 


It  is  sometimes  better  to  take  a  step  or  two  back 
and  get  a  firm  footing. 

In  the  case  of  China,  the  possibilities  of  action 
on  our  pait  for  the  immediate  future  are  severely 
limited,  but  they  are  definable.  We  intend  to  do 
everything  we  can  to  maintain  communication 
with  the  Chinese  people ;  to  make  it  plain  to  them 
that  we  are  prepared  to  aid  them  in  their  efforts 
to  improve  their  lot  to  the  extent  they  make  pos- 
sible by  renouncing  the  foreign  domination  which 
sooner  or  later  they  will  know  has  been  foisted 
upon  them. 

By  contrast,  there  are  countries  like  Australia, 
New  Zealand,  the  Philippines,  and  Japan  where 
democracy  is  well-established  and  where  we  shall 
do  everything  that  is  necessary  to  prevent  their 
independence  and  democracy  from  being  success- 
fully attacked. 

In  between  are  the  countries  like  Indonesia, 
Indochina,  Burma,  and  Korea,  where  independ- 
ence has  only  recently  been  won  and  where  the 
new  Governments  and  their  people  are  struggling 
against  fearful  odds  to  get  democratic  institu- 
tions started  and  to  improve  the  desperately  low 
standards  of  living.  They  are  faced  with  nearly 
overpowering  problems :  illiteracy,  wretched 
health,  an  utter  lack  of  experience  in  self-govern- 
ment, frequently  not  even  adequate  means  of 
communication  laetween  the  government  and  the 
people.  These  people  are  not  interested  in  becom- 
ing party  to  the  world's  ideological  struggle,  in 
being  cannon  fodder  in  what  they  regard  as  other 
people's  battles.  They  feel  that  they  have  prob- 
lems enough  of  their  own.  They  will  shy  away 
from  any  effort  to  involve  them. 

If,  however,  we  can  convince  them  that  our 
objectives  with  respect  to  them  are  only  to  help 
them  accomplish  their  own  objectives  of  internal 
development  and  improvement  they  will  welcome 
our  aid,  and,  through  it,  they  will  be  better  able 
to  prevent  Soviet  penetration  or  domination. 

The  United  States  is  the  best  able  of  all  coun- 
tries in  the  world  to  assist  these  people.  Our  big 
job  is  to  convince  them  that  we  desire  to  assist 
them  without  requiring  them  to  assume  commit- 

We  are,  therefore,  dealing  with  a  manageable 
situation  now  in  the  Far  East.  We  are  dealing 
with  a  situation  wliere  the  things  that  we  wish 
to  do  can  be  done  and  not,  as  before,  with  a  de- 
teriorating situation  that  was  beyond  our  power 
to  influence.  We  are  dealing  with  a  situation 
where  there  are  long-term  factors  which  can  work 
strongly  in  our  favor.  There  is  not  only  the  good 
will  that  will  accrue  to  us  from  our  past  and 
present  policies,  but  there  is  the  ancient  deep- 
seated  determination  of  tlie  Chinese  people  to 
throw  off  any  outside  domination.  Tliere  is  the 
ability  of  the  American  people  to  cooperate  with 
other  peoples  who  are  engaged  in  improving  their 
standard  of  life.  There  is  the  appeal  of  human 
freedom,  an  appeal  which  becomes  stronger  the 
more  it  is  denied. 

In  the  Far  East,  then,  we  are  in  a  situation 
where  one  of  our  valued  allies  has  temporarily 
gone  under.  We  have  witnessed  an  eastern  "Bat- 
tle of  France."  But  the  lines  in  this  struggle  for 
peace  and  freedom  are  now  drawn  on  more  fav- 
orable territory.  The  struggle  in  this  area  for 
freedom  and  progress  is  by  no  means  irretrievably 

The  European  Situation 

Let  us  look  at  the  situation  in  Europe.  The 
Economic  Recovery  Program  is  well  under  way. 
Much  of  the  rubble  has  been  cleared  away.  The 
factories  ai'e  in  operation.  The  people  are  being 
fed.  Two  problems  remain  of  serious  dimen- 


First  is  the  problem  of  Germany.  Germany  is 
the  greatest  center  of  productive  power  outside  the 
United  States.  It  is  a  matter  of  first  importance 
that  this  power  not  come  into  the  hands  of  those 
who  are  directing  the  Soviet  conspiracy  against 
the  freedom  of  tlie  world.  It  is  equally  important 
tliat  the  German  people  themselves  not  be  per- 
mitted again  to  become  a  threat  against  the  world. 
Both  of  these  ends  can  be  met  only  by  making 
Germany  an  integral  part  of  a  closely  knit  pattern 
of  Western  Europe. 

It  has  been  apparent  that  the  leadership  in  this 
effort  would  have  to  come  from  the  French.  For 
a  few  years  following  the  war,  the  French  gave  no 
indication  that  they  had  tlie  will  or  the  capacity 
to  undertake  this  leadersliip.  Their  morale  had 
been  sliattered  by  the  experience  of  the  war.  The 
British,  concerned  with  their  own  special  eco- 
nomic problems  and  wanting  to  maintain  their  po- 
sition as  the  center  of  the  British  Commonwealth 
of  nations,  were  unwilling  to  merge  their  political 
and  economic  sovereignty  in  sucli  a  pattern  of 
Western  Europe.  Now,  however,  with  the  pro- 
posals recently  made  by  Mr.  Schuman  for  a 
French-German  coal  and  steel  pool,  in  which  other 
European  countries  would  be  invited  to  join,  the 
action  that  can  and  must  be  taken  to  solve  the 
problem  of  Germany  and  of  Western  Europe  has 
become  much  clearer.  This  reemergence  of 
French  statesmanship  is  one  of  the  most  encour- 
aging signs  of  the  postwar  period.  Tlie  "flow" 
here  is  setting  in. 


The  second  problem  of  Europe  is  security 
against  the  possibility  of  aggression  by  the  Soviet 
Union.  This  security  has  been  profoundly  and 
favorably  affected  by  tlie  developments  that  have 
recently  taken  place  in  weapons  of  war.  The 
countries  that  want  peace  and  security  today  are 
more  fortunate  than  those  that  wanted  them  when 
Hitler  was  on  the  march.     The  rise  of  Hitler  coin- 


Departmenf  of  State  Bulletin 

cided  with  a  period  of  superiority  of  weapons  of 
aggression  over  weapons  of  defense.  The  ar- 
mored division  and  the  bombing  pUme  were 
mightier  tlian  the  means  cf  defense  against  them. 
The  only  elfective  defense  then  was  to  construct  a 
more  powerful  offense. 

Today,  there  are  indications  that  the  pendulum 
is  swinging  buck,  that  the  balance  will  be  in  favor 
not  of  countries  who  are  threatening  to  engulf 
other  peoples  but  in  favor  of  those  who  wish  to 
defend  themselves,  their  peace,  and  their  liberties 
against  aggression.  This  development  is  un- 
favorable from  the  point  of  view  of  the  Soviet 
Union,  which  has  made  abundantly  clear  its  pur- 
pose of  extending  as  far  and  as  rapidly  as  possible 
the  number  of  countries  satellite  to  it.  The  jet 
fighter  plane,  the  guided  missile,  the  improved 
bazooka,  and  radar  are  all  weapons  of  defense, 
not  weapons  of  aggression.  They  are,  therefore, 
weapons  that  strengthen  the  hands  of  the  people  of 
the  world  who  covet  no  additional  territories,  no 
domination  over  other  peoples.  They  strengthen 
the  non-Communist  world  which  wishes  only  for 
the  right  of  each  people  to  work  out  its  own  way  of 
life  in  its  own  way.  The  "flow"  here  in  the  di- 
rection of  peace  is  strong. 


The  third  problem  today  relates  to  the  struggle 
for  the  minds  of  men.  It  has  fallen  to  our  lot  to 
be  living  at  the  point  in  world  history  when  two 
great  concepts  of  human  existence  are  pitted  in 
what  may  be  the  conflict  from  which  one  or  the 
other  will  emerge  and  prevail  for  as  long  into  the 
future  as  we  can  see. 

One  concept  is,  of  course,  the  belief  that  the  life, 
the  interests,  the  integrity,  the  growth,  the  hap- 
jjiness  of  the  individual  human  being  is  the  ulti- 
mate value  and  that  human  institutions  exist  to 
promote  that  value.  This  belief  is  the  concept  of 
life  that  emerges  from  the  great  religions  of  the 
world.  It  has  been  developed  by  the  political 
philosophers  of  the  Western  world.  It  has  pro- 
duced among  other  ways  of  life  our  American  de- 
mocracy. The  preamble  to  the  Constitution  of  the 
Commonwealth  of  Massachusetts  puts  it  like  this : 

The  end  of  government  is  to  all  of  the  individuals 
who  compose  it  with  the  power  of  enjoying  the  blessings 
of  life. 

The  other  philosophy,  that  also  has  roots  going 
far  back  into  history,  is  premised  upon  the  con- 
cept of  the  state,  the  corporate  entity,  as  the  ulti- 
mate value.  Human  beings  exist  only  as  expend- 
able items,  as  cogs,  of  no  value  in  themselves  other 
than  as  they  contribute  to  this  artificial  entity. 
This  philosophy  asserts  that  all  human  thought, 
all  human  activity  must  be  dominated  by  the  state 
and  devoted  to  the  ends  of  the  state.  This  con- 
cept, the  intellectual  product  of  Hegel,  Fichte, 
Feuerbach,  and  Kant,  produced  as  one  of  its  off- 
shoots nazism;   as  another,  Soviet  communism. 

The  results  of  its  application  are  found  in  the 
present-day  police  state,  slave  labor,  the  drive  for 
world  domination,  the  effort  to  create  artificial  eco- 
nomic chaos  and  want,  the  efforts  to  render  inter- 
national institutions  ineffective,  in  the  drive  to 
intensify  international  insecurity  and  tension,  and 
in  the  all-out  assault  upon  human  freedom. 

The  Soviet  leaders  have  several  kinds  of  head- 
start  in  the  race  for  the  minds  of  the  people  of  the 
world.  They  have  been  carrying  on  an  energetic 
propaganda  campaign  for  several  score  of  years. 
Their  philosophies  are  rigid  and  uniform  so  that 
they  lend  themselves  to  packaged  thinking  and 
packaged  explanation.  It  is  easier  to  tear  down 
and  to  destroy  than  it  is  to  build.  It  is  easier  to 
create  doubt  and  suspicion  than  it  is  to  create  con- 
fidence. It  is  easier  to  set  forth  a  rigid  monolithic 
theory  than  something  whose  virtues  flow  from 
diversification  and  flexibility. 

But  here,  too,  there  has  been  a  "flow."  There 
has  been  growing  discrimination  by  the  great  ma- 
jority of  people  in  appraising  various  proposals 
for  an  easy  out  from  their  problems.  There  has 
also  been  a  growing  awareness  of  the  spurious  na- 
ture of  many  proposals  to  which  the  attractive 
word  "peace"  has  been  affixed. 

For  example,  the  Communists  have  recently 
been  active  in  Europe  in  obtaining  signatures  to 
what  they  call  "an  appeal."  This  appeal  reads  as 
follows : 

We  demand  the  absolute  banning  of  the  atom  weapon, 
arm  of  terror  and  mass  extermination  of  populations. 

We  demand  the  establishment  of  strict  international 
control  to  insure  the  implementation  of  this  banning 

We  consider  that  any  government  which  would  be  lirst 
to  use  the  atom  weapon  against  any  country  whatsoever 
would  be  committing  a  crime  against  humanity  and 
should  be  dealt  with  as  a  war  criminal. 

We  call  on  all  men  of  good  will  throughout  the  world 
to  sign  this  appeal. 

The  Communists  are  now  making  plans  to  cir- 
culate this  appeal  in  this  country  in  a  campaign 
beginning  in  the  next  2  or  3  weeks  and  extending 
through  next  October. 

What  is  the  background  of  this  "appeal?" 

True  Nature  of  the  Soviet  "Appeal" 

The  United  Nations  has  been  tackling  the  prob- 
lem of  how  to  achieve  security  against  the  de- 
structiveness  of  the  atom  bomb  for  the  past  4  years. 
All  of  the  member  nations  outside  of  the  Soviet 
Union  with  its  satellites  are  agreed  on  the  essen- 
tials for  effective  control.  The  basic  factors  of  the 
situation  have  led  to  these  essentials  with  the  in- 
evitability of  the  multiplication  table.  Because 
the  stuff  that  is  used  for  atomic  power  to  run  fac- 
tories can  in  a  matter  of  hours  be  put  into  a  piece 
of  machinery  that  converts  it  into  an  atom  bomb, 
it  is  necessary  to  have  some  international  agency, 
in  which  all  nations  will  have  confidence,  in  con- 
trol of  atomic  materials  from  the  time  the  minerals 
are  first  extracted  from  the  earth  until  the  last 

July   17,   7950 


ounce  of  energy  has  been  expended.  Mere  prom- 
ises will  not  suffice.  We  have  found  that  Soviet 
promises  are  often  broken.  We  must  assume  that 
they  would  be  broken  in  the  future.  Production 
and  control  by  an  international  agency  is  the  only 
guaranty  of  security.  All  the  members  of  the 
United  Nations  except  the  Soviet  Union  and  its 
satellites  have  indicated  their  willingness  to  take 
this  course. 

Why  has  the  Soviet  Union  I'efused?  Because 
the  operations  of  an  international  agency  would, 
to  some  degree,  breach  the  Iron  Curtain  that  the 
Soviet  Union  has  erected  around  the  area  of  the 
earth  that  it  controls.  Faced  as  it  was  by  the  ne- 
cessity of  a  choice  between  cooperating  in  a  pro- 
gram of  secui-ity  against  the  atom  bomb  and  main- 
taining the  Iron  Curtain,  the  Soviet  Union  chose 
the  latter.  To  put  a  better  front  on  this  position, 
however,  it  has  come  up  with  some  alternatives — 
alternatives  whicli  place  a  premium  upon  bad  faith 
and  evasion.  The  Soviet  Union  proposals  are: 
First,  that  all  countries  agree  not  to  make  any 
atomic  bombs  and,  second,  that  all  countries  agree 
not  to  be  first  to  use  the  atom  bomb. 

The  first  of  these  proposals  means  that  coun- 
tries with  democratic  institutions  whose  budgets 
and  policies  are  necessarily  matters  of  public 
knowledge  would  be  at  the  mercy  of  countries 
which  operate  behind  an  iron  curtain  and  whose 
every  activity  is  a  state  secret. 

The  second  agreement  would  mean  that  during 
the  period  when  the  Soviet  Union  was  supreme  in 
mass  armies,  which  it  refuses  to  reduce,  and  com- 
paratively weak  in  its  development  of  atomic 
weapons,  it  would  be  asking  the  rest  of  the  world 
to  discard  atomic  weapons  and  leave  itself  at  the 
mercy  of  the  Soviet  armies.  The  "appeal"  which 
the  Communists  are  circulating  is  an  appeal  to 
provide  these  strategic  advantages  for  the  Soviet 

It  is  necessary  in  the  present  world  for  people 
to  read  the  fine  print  in  resolutions  that  are  pre- 
sented to  them;  even  more,  to  read  between  the 
lines  of  the  fuie  print. 

In  spite  of  propaganda  barrages,  however, 
democracy  and  freedom  still  remain  for  the  great 
majority  of  the  people  of  the  world  the  most  at- 
tractive way  of  life.  This  fact  is  shown  by  the 
votes  in  the  United  Nations.  It  is  shown  by  the 
vast  dissatisfactions  among  many  of  the  people 
living  in  police  states  behind  the  Iron  Curtain. 

Moreover,  believers  in  democracy  are  once  again 
becoming  articulate.  We  are  beginning  to  reex- 
amine and  define  the  things  by  which  we  live. 
There  has  been  an  encouraging  increase  in  articles 
and  books  on  the  philosophical  foundations  of 
democracy.  We  are  once  again  taking  on  the  job 
of  becoming  political  philosophers  and  are  meet- 
ing the  adversary  in  that  field. 

These,  I  believe,  are  some  of  the  developments 
in  the  world's  situation  during  the  last  few  weeks 
and  months  that  future  historians  may  point  to  as 
milestones  at  the  midpoint  of  the  twentieth  cen- 

tury having  significant  bearing  on  the  effort  to 
build  a  world  marked  by  confidence  and  coopera- 
tive effort. 

They  are  not  guaranties  of  success.  No  genera- 
tion can  pass  on  to  its  successors  the  boon  for 
human  freedom  fully  forged  and  forever  guaran- 
teed. The  most  each  age  can  do  is  to  bequeath  to 
the  next  a  living  freedom,  to  be  extended,  strength- 
ened, and,  if  necessary,  defended.  The  most  that 
any  generation  can  ask  is  to  have  a  freedom  to 

There  are,  as  we  have  seen,  those  who  get  greater 
zest  out  of  throwing  stones  at  those  who  are  in 
the  front  line  than  in  joining  in  the  effort.  But 
that  has  always  been. 

I  said  when  I  began  that  there  were  two  issues 
in  the  world.  One  was  creating  the  structure  of 
peace  and  the  other  protecting  our  freedoms.  In 
fact,  however,  they  are  one  and  the  same.  The 
struggle  for  freedom  today  is  the  struggle  for 
peace.  Those  who  menace  our  peace  would  de- 
stroy our  freedom.  It  is  because  freedom  is  being 
challenged  all  over  the  world  that  we  have  become 
universally  preoccupied  with  the  defense  of  peace. 
It  is  because  freedom  is  won  or  lost  in  so  many 
different  ways  and  in  such  varying  degr-ees  that 
these  efforts  reach  into  every  kind  of  activity  and 
every  area  of  life,  compelling  us  to  work  on  a 
universal  front. 

Present  U.S.  Strategy 

It  is  for  this  reason  that  the  broad  strategy 
which  we  must  follow  is  the  strategy  of  doing 
what  has  to  be  done.  It  used  to  be  a  tenet  of 
nineteenth  century  international  political  philos- 
ophy that  the  people  of  the  United  States  should 
concern  themselves  only  with  the  things  that  they 
are  able  effectively  to  control.  That  was  true  in 
the  nineteenth  century  world.  It  is  not  true  in 
the  world  of  today.  The  people  of  Arizona,  can- 
not make  their  will  absolutely  effective  in  Massa- 
chusetts, but  they  have  a  right,  indeed  a  duty,  to 
take  a  position  on  matters  in  Massachusetts  that 
affect  the  national  interest.  Similarly,  the  world 
today  is  one,  and  we  cannot  make  it  otherwise. 

The  history  of  the  last  3  years  in  Greece  is  a 
case  in  point.  There  were  those  who  said  that 
we  should  not  give  assistance  to  the  Greek  Gov- 
ernment in  its  effort  to  preserve  the  freedom  of 
that  country  from  outside  aggressions,  because 
we  were  not  in  a  position  to  exercise  absolute  au- 
thority in  that  sector  of  the  world,  because  we 
could  not  guarantee  the  outcome.  However,  be- 
cause the  Greeks  were  threatened  with  engulf- 
ment,  and  because  the  free  world  could  not  afford 
to  see  one  country  after  another  succumb,  we 
provided  help,  and,  today,  Greece  and  Turkey, 
and  the  Near  East  to  which  they  are  the  path- 
way, are  still  free.  A  world  order  is  emerging 
in  which  the  test  of  what  each  country  is  called 
upon  to  do  is  not  its  own  ability  to  control  the 


Department  of  State   Bulletin 

outcome,  but  rather  what  is  needed  as  a  part  of 
the  whole. 

This  new  world  order  will  not,  we  may  be  sure, 
be  patterned  exactly  on  anythinj^  that  has  gone 
before.  Like  all  living,  strong  political  organ- 
isms, it  must  be  fashioned  according  to  the  par- 
ticular facts  and  needs  with  which  it  must  deal. 
It  will  be  a  complex  of  United  Nations  organs 
and  agencies,  coal  and  steel  and  atomic  energy  au- 
thorities, North  Atlantic  and  inter- American,  and 
other  regional  oi-ganizations,  all  designed  for  the 
job  at  hand. 

Here  again,  it  seems  clear,  events  are  in  our 
direction.  These  organizations  are  democratic  in 
their  structure  and  operation.  They  are  based 
upon  the  principles  of  free  discussion,  free  voting 
by  the  membei-s,  the  prevailing  of  the  will  of  the 
majority  with  safeguards  of  the  rights  of  the 
minority.  These  are  our  kind  of  outfit.  Col- 
lectively, they  can  carry  us  far  down  the  road  to 
a  healthy  world. 

We  cannot  afford  to  be  either  optimists  or  pessi- 
mists in  this  great  struggle  of  our  time.  The  out- 
come is  not  predetermined.  It  is  largely  in  our 
hands,  because  the  leadership  of  the  free  world 
has  fallen  to  us.  What  we  say,  what  we  do,  what 
we  tear  down,  what  we  support,  all  bear  on  the 
extent  of  each  ebb  and  the  strength  of  each  flow 
and  will  determine  the  final  direction  of  the  tide. 

U.S.  Replies  to  Rumanian  Protest 
Against  Restrictive  Travel  Order 

[Released  to  the  press  July  6] 

The  United  States  Oovernment  has  replied  to  the  Ru- 
manian Goi-erninent's  protest  of  June  19,  1950,  regard- 
ing the  institution  of  restrictions  on  travel  by  personnel 
of  the  Rumanian  Legation  at  Washington}  The  text  of 
the  United  States  note,  delivered  to  the  Rumanian  Le- 
gation on  July  3,  1960,  follows. 

The  Secretary  of  State  presents  his  compli- 
ments to  the  Honorable  the  Minister  of  Rumania 
and,  with  reference  to  his  note  No.  2421  of  June 
19,  1960,  has  the  honor  to  respond  to  the  Ku- 
manian  Government's  protest  against  regulations 
which  the  United  States  Government  has  insti- 
tuted in  respect  of  travel  by  personnel  of  the  Ru- 
manian Legation  at  Washington. 

It  is  of  interest  to  note  the  Rumanian  Govern- 
ment's explicit  acknowledgment  that  the  imposi- 
tion of  travel  restrictions  by  a  receiving  govern- 
ment upon  the  oflBcial  pereonnel  of  a  sending 
government  constitutes  a  limitation  of  the  normal 
activity  of  a  diplomatic  Mission.  With  this  view, 
the  United  States  Govermnent  readily  agrees. 

Restrictions  of  movement,  like  restrictions 
upon  the  free  flow  of  information  and  cultural 
exchange  as  imposed  by  the  Rumanian  Govern- 

"  Bulletin  of  June  5,  1950,  p.  921 ;  July  3,  1950,  p.  30. 
July   17,   1950 

ment,  are  basically  distasteful  to  the  American 
people  and  its  Government.  Travel  regulations 
applicable  to  personnel  of  the  Rumanian  Lega- 
tion at  Washington  have  been  instituted  merely  as 
a  reciprocal  limitation  of  dipkunatic  privilege  in 
view  of  the  nature  and  effect  of  travel  restrictions 
as  applied  by  Rumanian  authorities  to  membei-s 
of  the  American  Legation   at  Bucharest. 

On  the  one  hand,  the  Rumanian  Government 
complains  that  restrictions  on  the  travel  of  its  Le- 
gation jDersonnel  tend  to  prevent  its  diplomatic 
Mission  from  carrying  on  its  normal  activity. 
On  the  other  hand,  the  Govermnent  of  Rumania 
alleges  that  its  own  travel  restrictions  are  applied 
without  discrimination  to  all  diplomatic  Missions 
in  Rumania.  The  inescapable  deduction  from 
this  argument,  if  taken  at  face  value,  would  be 
that  the  Rumanian  Government  is  applying 
measures  which  tend  to  prevent  the  performance 
of  normal  activities  by  all  diplomatic  Missions  in 

Without  debating  the  artificial  contention  of 
the  Rumanian  Government  that  its  travel  restric- 
tions are  nondiscriminatory,  it  may  be  said  that 
the  United  States  Government  rejects  the  thesis 
that,  no  matter  how  obstructive  and  abnormal  the 
behavior  of  a  particular  state  toward  American 
interests  and  official  American  representatives,  the 
conduct  of  United  States  relations  with  that  state 
must  correspond  uniformly  with  the  conduct  of 
United  States  relations  with  other  states. 

At  such  time  as  the  Rumanian  Government  may 
be  disposed  to  remove  the  restrictions  which  it 
has  placed  upon  the  travel  within  Rumania  of 
American  Legation  personnel,  especiallv  in  per- 
formance of  tTie  normal  functions  of  a  diplomatic 
Mission,  the  United  States  Government  will  be 
prepared  to  alter  accordingly  the  restrictions 
which  presently  apply  to  travel  by  personnel  of 
the  Rumanian  Legation  within  the  United  States. 
Meanwhile,  as  the  Rumanian  Government  has 
been  informed,  the  travel  procedure  will  be  ad- 
ministered with  a  view  to  the  current  treatment 
in  this  regard  by  Rumanian  authorities  of  the 
United  States  representatives  in  Rumania. 

U.S.  Survey  Mission  To  Study 
Philippine  Economic  Situation 


[Released  to  the  press  iy  the  White  House  June  29] 

The  United  States  Government,  at  the  request 
of  President  Elpidio  Quirino,  is  sending  an  Amer- 
ican Economic  Survey  Mission  to  Manila  to  study 
and  report  on  the  jDresent  pressing  economic  prob- 
lems of  the  Philippines.  When  President  Quirino 
was  in  Washington  last  February  he  discussed 


with  me  some  of  the  difficulties  which  face  his 
country.  The  idea  of  this  mission  has  developed 
out  of  these  discussions  and  subsequent  ones  in 
Manila  between  President  Quirino  and  Ambassa- 
dor Cowen. 

The  purpose  of  this  mission  will  be  to  survey  the 
entire  Philippine  economic  situation,  to  make  rec- 
ommendations on  measures  of  self-help  which 
might  be  undertaken  by  the  Philippine  Govern- 
ment itself,  and  to  make  recommendations  on  ways 
in  which  the  United  States  might  be  helpful. 
President  Quirino  has  assured  me  that  this  mission 
will  receive  the  fullest  cooperation  of  the 
Philippine  Government. 

The  Honorable  Daniel  W.  Bell,  President  of  the 
American  Security  and  Trust  Company  of  Wash- 
ington, and  formerly  Under  Secretary  of  the 
Treasury,  has  accepted  the  important  position  of 
chief  of  the  mission.  He  will  be  my  personal  rep- 
resentative, with  the  personal  rank  of  Ambassador, 
and  will  report  directly  to  me.  The  deputy  chief 
of  the  mission  will  be  Maj.  Gen.  Kichard  J.  Mar- 
shall, President  of  the  Virginia  Military  Institute, 
who  has  had  many  years'  experience  in  the  Philip- 
pines. He  will  have  the  personal  rank  of  Minister. 
Work  is  now  proceeding  actively  on  the  selection 
of  the  other  members  of  the  mission,  and  I  hope 
it  will  be  prepared  to  start  its  work  early  in  July. 

I  consider  this  mission  to  be  of  the  highest  im- 
portance, not  only  because  of  the  results  which  I 
expect  it  to  produce  but  also  because  it  is  a  symbol 
of  the  half-century  of  intimate  relationship  be- 
tween the  Philippine  and  American  peoples.  It 
is  my  hope  that  the  mission  will  further  solidify 
this  historic  association. 


The  Department  of  State  announced  on  July  7 
that  the  Economic  Survey  Mission  to  the  Philip- 
pines will  arrive  at  Manila  on  July  10. 

Members  and  advisers  of  the  Mission  follow : 


Daniel  W.  Bell  (Chief  of  Mission),  President,  American 
Security  and  Trust  Company,  Washington,  D.C. 

Richard  J.  Marshall  (Deputy  Chief  of  Mission),  Major 
General,  U.S.A.,  Ret.,  Superintendent,  Virginia  Mili- 
tai-y  Institute,  Lexington,  Va. 

Edward  M.  Bernstein  (Chief  Economist)  (On  leave  of 
absence  from  the  International  Monetary  Fund), 
Washington,  D.C. 

August  L.  Strand  (Agricultural  Survey),  President,  Ore- 
gon State  College,  Corvallis,  Oreg. 

Francis  McQuillin  (Industry  and  Power),  Assistant  to  the 
President,  West  Penn  Power  Company,  Pittsburgh, 


Alvin  H.  Cross  (Fiscal  Management),  Deputy  Commis- 
sionar,  Accounts  and  Collection  TJnit,  Bureau  of  In- 
ternal Revenue,  Department  of  the  Treasury 

Michael  J.  Deutch  (Industrial  Engineering),  1737  H 
Street,  NW.,  Washington,  D.C. 

David  I.  Ferber  (Political  Adviser),  Foreign  Service  OflS- 
cer.  Department  of  State 

Lawrence  Fleishman  (Fiscal  Management),  Supervising 
C\istoms  Agent,  Department  of  the  Treasury,  Seattle, 

Joseph  B.  Friedman  (Legal  Affairs),  1026  Woodward 
Building,  Washington,  D.C. 

Wilbur  A.  Gallahan  (Fiscal  Management),  Tax  Adviser 
to  the  Commissioner  of  Internal  Revenue,  Depart- 
ment of  the  Treasury 

William  T.  Heffelfinger  (Fiscal  Management),  Assistant 
to  the  Fiscal  Assistant  Secretary  of  the  Treasury, 
Department  of  the  Treasury 

Richard  A.  jMiller  (Distribution  and  Trade),  420  East  23d 
Street,  New  Yorli 

Austin  Nisonger  (Fiscal  Management),  Deputy  Chief, 
Accounting  Division,  Civil  Aeronautics  Administra- 
tion, Department  of  Commerce 

Jameson  Parker  (Public  Relations),  2116  Bancroft  Place, 
NW.,  Washington,  D.C. 

Clarence  M.  Purves  (Agriculture),  Assistant  Chief,  Re- 
gional Investigations  Branch,  Office  of  Foreign  Agri- 
cultural Relations,  Department  of  Agriculture 

Louis  Shere  (Taxation),  Professor  of  Economics  and  Di- 
rector of  Tax  Research,  University  of  Indiana,  Bloom- 
ington,  Ind. 

William  W.  Tamplin  (Mining),  Bureau  of  Mines,  Depart- 
ment of  the  Interior 

Donald  Thompson  (Banking),  Vice  President,  Federal  Re- 
serve Bank  of  Cleveland,  Cleveland.  Ohio 

Carlton  L.  Wood  (Distribution  and  Trade),  Office  of  In- 
ternational Trade,  Department  of  Comniei-co 

German  Export- Import  Figures 
for  1947-48  Released 

The  Department  of  State  on  June  22  released 
the  report  of  an  international  firm  of  auditors 
on  the  audit  of  the  Joint  Export-Import  Agency 
accounts  for  the  years  1947-48.  JEIA  was  the 
official  military  government  agency  which,  during 
the  period  covered  by  these  accounts,  was  respon- 
sible for  the  trade  and  commerce  of  the  United 
States-United  Kingdom  bizonal  area  of  Germany. 
The  agency's  responsibility  was,  subsequently,  ex- 
tended to  the  French  zone  as  well. 

With  the  formation  of  the  German  Government 
late  in  1949,  JEIA's  responsibilities  were  gradu- 
ally assigned  to  German  agencies,  and  the  organi- 
zation was  terminated  on  December  19,  1949. 
The  organization  is  now  in  liquidation,  and  an 
audit  for  tlie  period  from  January  to  September 
30, 1949,  is  now  under  way,  with  final  audit  at  date 
of  complete  liquidation. 

Assets  on  December  31,  1948,  consisted  of  bal- 
ances in  foreign  banks  of  $296,328,274  and  ac- 
counts receivable  at  $182,312,474,  for  a  total  of 
$478,640,748.  The  principal  liabilities  were  ac- 
counts payable  at  $82,174,711,  and  the  capital  of 
the  agency  was  $125,355,504,  consisting  of  equal 
United  States-United  Kingdom  contributions  in 
the  manner  specified  in  the  bizonal  fusion  agree- 
ment of  December  2,  1946. 


Department  of  State  Bulletin 

The  United  States  in  tiie  United  Nations 

[July  8-14] 

Secretary-General's  Communique  on  Korea 

All  United  Nations  members,  with  the  excep- 
tions of  Yugoslavia  and  Egypt,  had,  by  July  13, 
replied  to  the  circular  telegram  sent  out  by  Secre- 
tary-General Lie  inquiring  about  the  type  of  as- 
sistance members  might  be  prepared  to  offer  in 
implementation  of  the  Security  Council  resolution 
of  June  27.^  Fifty-two  replies  from  members,  as 
well  as  two  from  nonmembers — Italy  and  the 
Hashemite  Kingdom  of  Jordan,  acknowledge  the 
communication  and  indicate  moral  support  and,  in 
some  cases,  offer  direct  military  assistance  or  other 
material  aid.  Byelorussia,  the  U.S.S.E.,  Czecho- 
slovakia, Poland,  and  the  Ukraine  rejected  the 
Security  Council  action  as  "illegal,  as  did  the 
Chinese  Communist  regime  and  North  Korea. 

Economic  and  Social  Council 

During  the  second  week  of  its  eleventh  session, 
now  in  progress  at  Geneva,  the  Economic  and 
Social  Council  concluded  general  debate  on  meth- 
ods for  financing  economic  development  of  under- 
developed countries,  approved  the  report  of  the 
Statistical  Commission,  including  the  resolutions 
contained  therein,  and  almost  completed  consider- 
ation of  the  report  of  the  Transport  and  Com- 
munications Commission. 

The  question  of  methods  for  financing  economic 
development  of  underdeveloped  countries  was  re- 
ferred to  the  Council's  Economic  Committee  for 
more  detailed  study.  In  the  course  of  the  general 
debate,  Isidor  Lubin  of  the  United  States  com- 
mented on  the  progress  that  had  been  made  in 
reaching  a  common  understanding  of  the  basic 
elements  of  the  problem  of  economic  development. 
Not  only  was  there  a  full  realization  that  internal 
effort  and  organization  on  the  part  of  the  coun- 
tries themselves  is  required,  he  said,  but  also  that 
capital  from  foreign  sources,  both  private  and  pub- 
lic, can  play  a  vital  part  in  the  process.  One  of 
the  major  tasks  before  the  Council,  Mr.  Lubin  con- 
tinued, "is  to  try  to  analyze  the  conditions  and 
factors  which  may  affect  the  pace  and  scope  of 
economic  development  in  the  near  future." 

The  Council  approved  a  number  of  proposals  of 
the  Transpor-t  and  Communications  Commission 

"  BuLLEi'iN  of  July  3,  1950,  p.  7. 

in  connection  with  consideration  of  its  report. 
One  of  the  approved  resolutions  recommends  rati- 
fication of  the  convention  establishing  the  Inter- 
governmental Maritime  Consultative  Organiza- 
tion, and,  in  this  connection,  Mr.  Lubin  announced 
that  the  United  States  Senate  had  ratified  this 
convention.  Other  resolutions  involved  proposals 
to  remove  barriers  to  international  transport  of 
goods,  coordination  of  inland  transport,  maritime 
shipping  affecting  Latin  America,  international 
road  transi^ort,  the  problem  of  pollution  of  sea 
water,  and  implementation  of  the  decisions  of  the 
Atlantic  City  telecommunications  conference  in 

A  resolution  authorizing  the  Secretary-General, 
on  the  advice  of  the  Interim  Coordinating  Com- 
mittee for  International  Commodity  Arrange- 
ments, to  convene  a  conference  to  consider  inter- 
national commodity  problems  was  referred,  after 
India's  opposition,  to  the  Council's  Economic 
Committee  for  further  study. 

Interim  Committee 

On  July  13,  the  Interim  Committee  opened  dis- 
cussion on  disposition  of  the  former  Italian  colony 
of  Eritrea,  with  presentation  of  the  report  of  the 
United  Nations  Commission  for  Eritrea  by  Kap- 
porteur  Ziaud  Din  of  Pakistan.  The  report  puts 
forth  three  different  proposals  for  the  disposition 
of  Eritrea.  The  first,  favored  by  the  delegations 
of  Burma  and  the  Union  of  South  Africa,  calls 
for  a  federation  of  Eritrea,  as  a  self-governing 
unit,  with  Ethiopia,  under  the  sovereignty  of  the 
Ethiopian  Crown.  The  second  proposal,  submit- 
ted by  the  Norwegian  delegation,  suggested  re- 
union of  Eritrea  with  Ethiopia,  with  provision 
that  the  western  province  could  provisionally  and 
for  a  limited  period  of  time  be  left  under  the  pres- 
ent British  administration.  The  third  proposal, 
submitted  by  Guatemala  and  Pakistan,  would 
place  Eritrea  under  direct  United  Nations  trus- 
teeship for  a  maximum  period  of  10  years,  at  the 
end  of  which  it  would  become  independent. 

In  the  ensuing  debate  the  Norwegian  and  South 
African  delegates  supported,  in  general,  the  pro- 
posals of  their  Commission  representatives,  while 
the  United  Kingdom  delegate  spoke  in  favor  of 
a  partition  plan.  The  Burmese  and  Pakistani 
representatives,  lacking  instructions,  reserved 
their  right  to  speak  when  the  debate  resumes  on 
July  14. 

July   17,   1950 


General  Policy  p^^^ 

U.N.   Places  Unified   Command  of   Military 
Forces  in  Korea  Under  United  States: 
Text  of  Security  Council  Resolution  ...  83 

General  MacArthur  Designated  as  Com- 
manding General.  Statement  by  the 
President 83 

The  United  Nations  and  Korea.     By  Philip 

C.  Jessup 84 

Charging  South  Korea  as  Aggressor  Reminis- 
cent of  Nazi  Tactics.  Statement  by 
Secretary  Acheson 87 

U.S.  Military  Actions  in  Korea.     Addresses 
by  John  Foster  Dulles: 
New  Phase  of  American  Foreign  Policy  .    .  88 

The  Interdependence  of  Independence  .    .  91 

New  Challenges  to  American  Diplomacy.    By 

George  C.  McGhee 96 

Where    We   Stand   Today.     By    Francis   H. 

Russell 112 

U.S.   Replies  to  Rumanian   Protest   Against 

Restrictive  Travel  Order 117 

The  United  Nations  and 
Specialized  Agencies 

U.N.   Places   Unified    Command  of  Military 
Forces  in  Korea  Under  United  States: 
Text  of  Security  Council  Resolution  ...  83 

General  MacArthur  Designated  as  Com- 
manding   General.     Statement    by    the 

President 83 

The  United  Nations  and  Korea.     By  Philip 

C.  Jessup 84 

The  United  Nations  and  Page 

Specialized  Agencies — Continued 

U.N.  Commission  Reestablishes  Headquarters 

in  Korea 92 

The  United  States  in  the  United  Nations  .    .        119 

Economic  Affairs 

U.S.  Survey  Mission  To  Study  Philippine 
Economic  Situation: 

Statement  by  the  President 117 

Survey  Mission  Membership 118 

International  Information  and 
Cultural  Affairs 

Support  for  an  Expanded  Information  and 
Education  Program.  Statement  by  Sec- 
retary Acheson 100 

Forging  a  Free  World  With  a  Truth  Cam- 
paign.    By  Edward  W.  Barrett  ....        103 

Technical  Assistance 

Point  Four:   An  Investment  in  Peace, 
dress  by  the  President 


The  Department 

Analysis  of  Senator  McCarthy's  Public  State- 





Foreign  Relations  Volumes,  1933,  Released  .  95 

German  Export-Import  Figures  for  1947-48 

Released 118 


^Ae/  z/)eh€f/)^tmeni/  4)^ ^aie^ 


TO  TYRANNY  •  Address  hy  the  President 123 



TO  GATT  •  By  Melvin  E.  Sinn 150 


ACT  •  By  Herv4  J.  L'Heureux 125 

For  complete  contents  see  back  cover 

Vol.  XXIII,  No.  577 
July  24,  1950 



Qje/ia/y^me^ ^/ y^te    J3llilGiin 

Vol.  XXIII,  No.  577  .  Pubucation  3919 
July  24,  1950 

For  sale  by  the  Superintendent  of  Documenti 

U.S.  Qovernment  Printing  Office 

Washington  26,  D.O. 


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Single  copy,  20  cents 

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been  approved  by  the  Director  of  the 
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Note:  Contents  of  this  publication  are  not 
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be  reprinted.  Citation  of  the  Department 
oy  State  BtJU-Exra  as  the  soiu-ce  will  be 

The  Department  of  State  BULLETIN, 
a  weekly  publication  compiled  and 
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Office  of  Public  Affairs,  provides  the 
public  and  interested  agencies  of 
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Justice  Based  on  Human  Rights:  A  Threat  to  Tyranny 

Address  by  the  President  ^ 

To  our  forefathers,  the  courts  were  the  distinc- 
tive symbol  of  the  kind  of  government — the  kind 
of  society — which  they  were  creating  in  the  wilder- 
ness of  this  continent.  This  new  nation  was  to  be 
a  democracy  based  on  the  concept  of  the  rule  of 
law.  It  was  to  be  a  society  in  which  every  man 
had  rights — inalienable  rights — rights  which 
were  not  based  on  creed,  or  rank,  or  economic 
power  but  on  equality.  In  such  a  society,  the 
courts  had  the  function  not  only  of  dealing  out 
justice  among  citizens  but  of  preserving  justice 
between  the  citizens  and  the  state. 

The  founders  of  this  country  had  a  very  clear 
conception  of  the  corruptibility  of  power — of  the 
innate  danger  in  all  human  affaii-s  of  the  selfish 
or  arbitrary  exercise  of  authority.  To  guard 
against  this  ever-present  danger,  they  adopted  the 
principle  that  there  is  a  fundamental  law — ex- 
pressed in  the  Constitution,  and  particularly  in  the 
Bill  of  Rights — to  which  every  exercise  of  power 
has  to  conform.  The  purpose  of  this  fundamental 
law  is  to  protect  the  rights  of  the  individual.  To 
apply  this  underlying  law  became  the  special  task 
of  the  courts. 

This  concept  of  justice  based  on  individual 
rights  is  so  familiar  to  us  that  we  take  it  for 
granted.  Yet,  in  essence,  it  is  a  revolutionary  con- 
cept. It  has  always  been  a  threat  to  absolutism 
and  tyranny.  It  was  the  great  weapon  in  our 
own  Eevolution  and  the  basis  of  our  Republic. 
Today,  in  a  world  where  absolute  power  is  again 
on  the  march,  this  concept  of  justice  has  tremen- 
dous strength.  It  is  a  challenge  to  the  new  forms 
of  tyranny  as  it  was  to  the  old. 

Totalitarian  Concept  of  Justice 

In  our  lifetime,  we  have  witnessed  a  world- 
wide attack  on  this  ideal  of  justice.  Fascism, 
nazism,  Soviet  communism,  all  have  tried  to  con- 

"  Made  at  the  laying  of  the  cornerstone  of  the  new 
United  States  Courts  Building  in  the  District  of  Columbia 
(111  June  27  and  released  to  the  press  by  the  White  House 
on  the  same  date. 

vince  people  that  our  concern  with  individual 
human  rights  is  false  and  fraudulent. 

In  the  areas  under  their  control,  these  totali- 
tarian movements  have  swept  away  all  restraints 
on  their  own  power.  They  have  subjected  their 
own  people  to  all  the  evils  of  tyranny — to  kid- 
naping, torture,  slavery,  murder — without  hope 
of  redress  or  remedy.  They  have  made  a  mock- 
ery of  the  forms  of  justice.  Their  judges  are 
prosecutors;  their  prosecutors  are  hangmen; 
their  defense  attorneys  are  puppets.  Their  trials 
are  coldly  calculated  displays  of  propaganda, 
based  on  torture  and  designed  to  spread 

Wherever  nations  or  peoples  have  been  over- 
come by  totalitarianism,  the  practice  of  justice 
has  been  snuffed  out.  But  the  ideal  remains,  deep 
in  the  hearts  of  men.  Men  will  always  long  for 
protection  against  the  midnight  arrest,  the  slave 
camp,  the  torture  chamber.  Men  will  never  ac- 
cept these  things  as  right.  Today,  men  feel  more 
deeply  than  ever  that  all  human  beings  have 
rights  and  that  it  is  the  duty  of  government  to 
protect  them. 

Today,  we  are  participating  in  a  great  inter- 
national movement  for  the  better  protection  of 
individual  rights.  New  methods  of  protecting 
and  advancing  human  rights  are  being  proposed 
and  discussed.  Across  the  world,  men  of  good 
will  are  seeking  new  ways  of  making  human 
rights  triumphant  over  tyranny. 

steps  for  Triumph  Over  Tyranny 

The  first  step  was  taken  in  the  Charter  of  the 
United  Nations.  Weary  of  the  crimes  of  the  Axis 
tyrants,  all  the  united  nations  pledged  themselves, 
in  the  Charter,  to  promote  universal  respect  for 
and  observance  of  human  rights  and  fundamental 
freedoms.  The  San  Francisco  conference  ended 
with  the  promise  that  there  would  be,  in  time, 
an  international  bill  of  rights,  which  would  be 
as  much  a  part  of  international  life  as  our  own 
Bill  of  Rights  is  part  of  our  life  under  the 

July  24,   1950 


From  this  point,  many  steps  have  been  taken 
toward  the  creation  of  an  international  law  and 
morality  which  will  protect  human  rights  against 
the  misuse  of  arbitrary  power. 

By  the  judgment  of  the  Niirnberg  Tribunal, 
October  1, 1946,  it  was  established  that  the  highest 
officials  of  a  government  are  answerable  before 
the  bar  of  an  international  court  for  committing 
war  crimes,  crimes  against  peace,  and — in  connec- 
tion with  either  of  these — crimes  against  hu- 
manity. This  great  principle  was  further  con- 
firmed by  a  resolution  of  the  United  Nations  Gen- 
eral Assembly  of  December  11,  1946. 

International  action  is  also  being  taken  against 
the  crime  of  genocide — the  slaughter  of  entire  hu- 
man groups — whether  committed  in  time  of  peace 
or  in  time  of  war.  One  of  the  most  shocking 
examples  of  genocide  was  the  Nazi  attempt  to 
exterminate  an  entire  religious  group  deliberately 
and  methodically.  The  General  Assembly  of  the 
United  Nations  has  denounced  this  terrible  prac- 
tice and  has  affirmed  that  genocide  is  a  crime 
under  international  law. 

To  prevent  and  punish  the  crime  of  genocide 
in  the  future,  a  multilateral  convention  on  the  sub- 
ject was  prepared  and  approved  by  the  General 
Assembly  of  the  United  Nations  in  December  of 
1948.  The  convention  is  now  before  the  various 
members  of  the  United  Nations,  as  well  as  some 
nonmember  nations,  for  ratification.  Over  half 
the  ratifications  necessary  to  bring  the  convention 
into  force  have  already  been  deposited. 

I  have  asked  the  Senate  of  the  United  States 
to  give  its  advice  and  consent  to  the  ratification 
of  that  convention.  I  am  hopeful  that  the  Sen- 
ate will  do  so  before  this  Congress  adjourns.  We 
must  do  our  part  to  outlaw  forever  the  mass 
murder  of  innocent  peoples. 

Covenant  of  Human  Rights 

Another  step  toward  the  international  protec- 
tion of  human  rights  was  taken  by  the  General 
Assembly  of  the  United  Nations  in  December 
1948,  when  it  proclaimed  the  Universal  Declara- 
tion of  Human  Rights.  Like  our  own  Declara- 
tion of  Independence,  this  document  asserts  that 
all  membei's  of  the  human  family  are  endowed 
with  certain  inalienable  rights.  It  enumerates 
and  describes  these  fundamental  rights  and 

But  the  Declaration  of  Human  Rights  is  only 
an  appeal  to  the  conscience  of  the  world.  It 
offers  no  means  of  redress  when  rights  are  vio- 
lated. To  meet  this  need,  a  multilateral  conven- 
tion is  now  in  preparation.  This  is  designed  to 
make  binding  law  out  of  a  number  of  the  guiding 
principles  of  the  Declaration.  It  will  be  known 
as  the  Covenant  on  Human  Rights. 

The  task  of  obtaining  general  agreement  on  such 
a  Covenant  in  the  face  of  existing  differences  in 
legal  systems   and  of  language  barriers   is,  of 


course,  an  arduous  one.  I  have  faith,  however, 
that  the  Covenant  will  ultimately  be  adopted  and, 
also,  that  it  will  be  followed  by  other  agreements 
to  give  effect  to  the  principles  enunciated  in  the 
Declaration  of  Human  Rights. 

Thus,  bit  by  bit,  new  concepts  of  international 
law  and  justice  are  taking  form.  Through  an  in- 
ternational society  of  nations,  the  concept  is  de- 
veloping that  the  barbarous  treatment  of  individ- 
uals by  any  nation  is  the  concern  of  all  nations. 
This  growth  of  international  law  is  most  im- 
portant in  building  for  peace. 

It  is  a  mistake  to  underestimate  the  significance 
of  these  developments.  In  our  divided  world,  it 
is  easy  to  point  to  the  tremendous  gulf  between 
the  concept  of  individual  human  rights  and  the 
attainment  of  conditions  which  will  insure  their 
enjoyment.  It  is  easy  to  be  discouraged  by  the 
difficulty  of  creating  international  safeguards 
against  the  infringement  of  these  rights. 

Governments  Created  To  Serve  Human  Rights 

But  we  must  remember  that  it  is  our  belief  that 
governments  are  created  to  serve  human  rights. 
We  must  understand  clearly  that  our  belief  in 
human  rights  is  shared  today  by  peoples  all  over 
the  world.  We  must  have  faith  and  vision 
sufficient  to  realize  that  this  belief  is  the  rock  on 
which  the  peoples  of  the  world  can  build  a  better 
and  a  peaceful  future. 

In  its  beginnings,  this  world  movement  toward 
the  protection  of  human  rights  may  not  appear 
particularly  impressive.  But  the  courts  of  the 
District  of  Columbia  were  not  very  impressive, 
either,  when  they  were  first  set  up,  150  years  ago. 
They  were  without  buildings  or  physical  equip- 
ment and  uncertain  of  their  jurisdiction.  These 
courts  have  grown  strong,  because  they  are  based 
on  a  living  truth.  And  so  it  will  be  with  the  quest 
for  the  international  protection  of  human  rights. 
It,  too,  will  succeed,  because  it  is  based  upon  the 
same  great  concept. 

On  us,  as  a  nation,  rests  the  responsibility  of 
taking  a  position  of  leadership  in  the  struggle  for 
human  rights.  We  cannot  turn  aside  from  the 
task  if  we  wish  to  remain  true  to  the  vision  of 
our  forefathers  and  the  ideals  that  have  made  our 
history  what  it  is. 

Above  the  outward  forms  of  our  Government, 
above  our  laws  and  the  Constitution  itself,  there 
is  an  eternal  law  of  justice.  This  is  the  justice 
of  a  God  who  created  mankind  to  live  together  in 
brotherly  love.  This  is  the  justice  by  which  all 
the  deeds  of  men  are  judged.  The  fundamental 
purpose  of  our  lives  is  to  strive  toward  it,  to  the 
best  of  human  ability. 

As  a  nation,  we  must  devote  ourselves  to  that 
struggle.  In  the  words  of  the  ancient  Hebrew 
prophet,  we  should  say,  "Let  judgment  run  down 
as  waters,  and  righteousness  as  a  mighty  stream." 

In  no  other  way  can  the  nations  of  the  earth 

Department  of  State  Bulletin 


iy  Herve  J.  VHeureux 
Chiefs  Visa  Division 

The  Displaced  Persons  Act  of  1948,  as  amended 
by  Public  Law  555,  gives  the  Department  of  State 
and  its  consular  officers  major  responsibility  for 
administering  four  new  programs : 

1.  The  immigration  of  up  to  18,000  Polish  vet- 
erans in  Great  Britain,  sometimes  referred  to  as 
Anders  Army  Poles ; 

2.  The  immigration  of  up  to  4,000  refugees  from 
China ; 

3.  The  immigration  of  Greek  refugees  and  of 
certain  nationals  of  Greece,  entitled  to  preference 
status  under  our  regular  quota  laws; 

4.  The  immigration  of  European  refugees  in 
Europe  outside  Germany,  Austria,  and  Italy,  some- 
times called  "out-of-zone  refugees." 

Together  with  the  Displaced  Persons  Commis- 
sion and  the  Immigration  and  Naturalization 
Service,  the  Department  of  State  and  its  consular 
officers,  as  in  the  past,  share  responsibility  for 
;he  immigration  of  all  other  persons  who  may  be 
ssued  immigration  visas  under  the  act,  with  these 
nodifications : 

1.  The  program  for  the  admission  of  persons 
)f  ethnic  German  origin,  formerly  exclusively  in 
-he  hands  of  the  consuls,  and  of  the  Immigration 
,nd  Naturalization  Service  has  now  been  made  the 
)rimary  responsibility  of  the  Displaced  Persons 
I!ommission  whose  favorable  findings  are  subject 
Jo  review  by  the  consuls  and  by  the  immigration 
tuthorities.  Assurances  of  employment,  housing, 
nd  against  becoming  a  public  charge  are  now  re- 
uired  to  be  submitted,  for  this  class  of  immigrants, 
o  the  Displaced  Persons  Commission,  as  in  the 
ase  of  eligible  persons  and  eligible  displaced 
rphans ; 

uly  24,   1950 

2.  Although  under  the  original  act  the  Displaced 
Persons  Commission  had  exclusive  authority  to 
determine  the  eligibility  of  displaced  persons 
under  the  act.  Public  Law  555  leaves  the  first  de- 
termination of  such  eligibility  in  the  hands  of  the 
Commission  but  gives  the  consular  officer  and  the 
Immigration  and  Naturalization  Service  the  right 
to  review  those  cases  approved  by  the  Displaced 
Persons  Commission  and  to  take  adverse  action 
if  they  do  not  agree  with  the  findings  of  the 

Briefly,  the  principal  problems  confronting  the 
Department  and  our  consular  officers  in  adminis- 
tering those  programs  of  the  Displaced  Persons 
Act  for  which  the  Department  of  State  carries 
major  responsibility,  are  these : 

As  soon  as  the  President  signed  the  amendnsents 
to  the  Displaced  Persons  Act,  the  Department  sent 
instructions  to  its  consular  officers  in  Germany, 
Austria,  and  Italy  that  informed  them  of  the 
major  provisions  of  the  new  act  and  enabled  them 
to  issue  visas  in  most  cases  that  originate  with 
the  Displaced  Persons  Commission.  Also,  the 
Visa  Division  commenced  the  preparation  of  a 
first  draft  of  regulations  which  are  expected  to 
cover  all  phases  of  the  consular  responsibilities  in 
relation  to  the  Displaced  Persons  Act. 

The  regulations,  although  desirable  and  help- 
ful in  implementing  the  act,  are  actually  not  re- 
quired by  the  act  except  in  relation  to  assurances 
which  may  be  submitted  in  lieu  of  affidavits  or 
other  evidence  of  support  for  certain  groups. 
However,  it  is  planned  to  cover  by  regulation  the 
full  range  of  the  program  and  to  anticipate  as 
many  questions  as  may  arise  under  the  act  so  that 


in  administering  the  act  questions  of  interpreta- 
tion and  policy  will  cause  a  minimum  of  delay. 

In  reference  to  the  procedure  and  problems  in 
relation  to  those  parts  of  the  displaced  persons 
program  for  which  the  Department  carries  the 
major  responsibility,  certain  general  observations 
apply  to  all  four  groups. 

In  lieu  of  affidavits  of  support  or  other  evidence 
of  support,  assurances  of  employment,  housing, 
and  against  becoming  a  public  charge,  may  be 
submitted  by  a  citizen  or  citizens  of  the  United 
States  for  the  Polish  veterans  in  Great  Britain, 
refugees  from  Cliina,  the  Greek  refugees  and 
Greek  preferentials,  and  for  the  so-called  Euro- 
pean "out-of-zone"  refugees. 

Congress  has  made  this  provision  in  order  that 
American  organizations  interested  in  these  groups 
of  refugees  may  assist  in  their  resettlement.  In 
these  cases,  either  form  of  evidence  will  be  ac- 
ceptable and  either  may  be  used  for  different  indi- 
viduals. Affidavits  of  support  in  these  cases  may 
be  submitted  by  aliens  as  well  as  by  citizens ;  only 
assurances  of  employment,  housing,  and  against 
becoming  a  public  charge  must  be  submitted  by  a 
citizen  or  citizens  of  the  United  States.  If  the 
alien  submits  a  satisfactory  affidavit  of  support, 
which  may  indicate  available  employment,  he  is 
exempt  from  the  contract  labor  provisions  in  sec- 
tion 3,  Act  of  February  5,  1917.  He  is  likewise 
exempt  from  those  provisions  of  the  Act  of  Feb- 
ruary 5,  1917,  which  bar  aliens  whose  passage  is 
paid  for  by  corporations  and  others.  In  other 
words,  an  applicant  is  entitled  to  the  exemptions 
specified  whether  he  submits  affidavits  of  support 
or  an  assurance  as  authorized  in  the  Displaced 
Persons  Act  of  1948,  as  amended. 

Although  the  Department  and  its  consular  offi- 
cers will  do  everything  possible  to  assist  in  ad- 
ministering the  Displaced  Persons  Act,  every 
effort  will  be  made  to  prevent  the  entry  into  the 
United  States  of  any  alien  who  may  be  a  source 
of  danger  to  our  country.  The  question  of  se- 
curity shall  be  paramount.  Therefore,  consular 
officers  are  being  instructed  to  exercise  particular 
care  in  screening  applicants  of  the  groups  referred 
to  inasmuch  as  the  thorough  investigation  and 
written  report  required  of  eligible  displaced  per- 
sons and  persons  of  German  ethnic  origin  is  not 
required  for  these  groups. 

All  groups  referred  to  must  meet  certain  resi- 
dence requirements  in  order  to  qualify  under  the 

act.  A  Polish  veteran,  for  example,  must  have 
resided  in  the  British  Isles  on  June  16,  the  effec- 
tive date  of  the  amended  act.  The  question  has 
been  raised  whether  a  person  meeting  this  resi- 
dence requirement  who  has  since  moved  to  other 
countries,  for  example,  to  a  country  in  the  Western 
Hemisphere,  without  being  firmly  resettled  there, 
could  apply  there  for  a  visa.  It  is  doubtful  that 
Congress  intended  that  he  should  be  permitted  to 
apply  there  for  a  visa.  For  the  time  being,  at 
least,  the  issuance  of  visas  to  Polish  veterans  will 
be  restricted  to  our  consular  offices  in  the  British 

There  are  exceptions,  of  course.  Eefugees  from 
China,  if  otherwise  qualified,  may  apply  for  visas 
anywhere  in  the  world  outside  of  the  United 
States  as  long  as  they  are  not  firmly  resettled. 
The  same  rule  applies  in  the  case  of  Greek  refu- 
gees, some  of  whom  have  found  temporary  asylum 
in  neighboring  countries. 

In  cases  in  which  affidavits  of  support  have 
already  been  submitted  for  aliens  in  the  four 
groups  described,  new  affidavits  may  not  have  to 
be  submitted,  assuming  the  date  of  preparation  of 
such  affidavits  and  corroboratory  evidence  is  rea- 
sonably current.  No  rule  applies,  except  that  of 
reason,  regarding  the  length  of  time  such  affidavits 
may  be  regarded  as  having  probative  value.  This 
value  depends  to  a  great  extent  upon  the  relations 
between  the  applicant  and  the  sponsor,  the  surplus 
margin  of  income  shown,  and  the  apparent  per- 
manency of  the  means  of  support  of  the  sponsor 
as  indicated  in  the  affidavit  and  accompanying 
evidence.  The  consul,  of  course,  has  the  final  re- 
sponsibility to  determine  whether  the  evidence 
submitted  is  satisfactory.  Wherever  doubt  exists 
in  the  mind  of  the  sponsor,  he  should  possibly  sub- 
mit new  evidence  to  the  consul. 

The  Department  of  State  is  preparing  assurance 
forms  for  use  by  citizens  and  American  organiza- 
tions who  wish  to  sponsor  persons  within  the  four 
groups.  The  Department's  regulations  will  set 
forth,  in  considerable  detail,  the  manner  in  which 
these  assurances  are  to  be  submitted. 

As  a  rule  a  sponsor  will  have  to  submit  assur- 
ances directly  to  the  consular  office  in  which  the 
alien  plans  to  apply  for  his  immigration  visa.  It 
is  not  planned  to  sot  up  a  "validation  procedure" 
similar  to  that  of  the  Displaced  Persons  Commis- 
sion at  Washington.  However,  the  Department 
will  exercise  a  general  supervision  over  the  work 
performed  by  consuls  as  it  is  presently  doing  with 


Deparfmenf  of  State  Bulletin 

reference  to  all  consular  activities.  It  also  plans 
to  require  consuls  to  refer  to  the  Department  un- 
named assurances ;  that  is,  assurances  which  do  not 
identify  an  alien  by  name  but  only  by  skill,  if  the 
consul  within  a  reasonable  period  of  time  is  un- 
able to  find  an  applicant  meeting  the  requirement 
of  the  assurance.  The  Department  will  then  refer 
these  assurances  to  other  consular  offices  where 
Such  applicants  might  be  registered.  The  Depart- 
ment will  also  request  consuls  to  set  up  a  vocational 
index  for  all  registrants  so  they  can  handle  "un- 
named assurances"  as  expeditiously  as  possible. 

Polish  Veterans  in  Great  Britain 

Eighteen  thousand  immigration  visas  may  be 
issued  to  Polish  veterans  in  Great  Britain.  The 
act  requires  that  these  persons,  in  order  to  qualify, 
must  have  resided  in  the  British  Isles  on  June  16, 
1950,  and  must  have  registered  for  immigration 
visas  with  an  American  consul  in  Great  Britain 
before  that  date.  The  terms  "Great  Britain" 
and  "British  Isles,"  as  used  in  the  act,  are  con- 
sidered to  be  synonymous.  The  Department  does 
not  know  how  many  persons  in  Great  Britain  may 
qualify  under  this  provision.  Requests  for  in- 
formation regarding  specific  cases  should  be 
addressed  to  the  American  consul  with  whom  the 
applicant  is  registered,  otherwise  to  the  consul  gen- 
eral at  London  who  will,  most  likely,  be  desig- 
nated as  the  coordinator  for  the  Polish  program. 
Within  a  few  weeks,  consuls  in  England  will  begin 
to  process  cases  under  this  program,  particularly 
cases  in  which  satisfactory  affidavits  of  support 
have  been  submitted.  In  determining  whether  an 
applicant  is  firmly  resettled  in  England,  the  con- 
sul will  be  guided  by  the  expressed  Congressional 
intent  that  registration  for  an  immigration  visa 
with  an  American  consular  officer  in  Great  Britain 
before  June  16  shall  be  considered  indicative  of  the 
failure  of  such  registrant  to  become  either  firmly 
settled  or  resettled,  notwithstanding  the  provisions 
of  British  legislation,  except  in  the  case  in  which 
such  person  has  applied  for  British  citizenship. 

To  qualify  as  a  "Polish  veteran,"  a  person  does 
not  have  to  be  a  native  of  Poland.  As  a  matter  of 
fact,  many  Polish  veterans  were  born  in  other 
central  European  countries,  such  as  Czechoslo- 

Refugees  From  China 

Four  thousand  immigration  visas  may  be  issued 
to  refugees  from  China.    They  must  be  "Iro  ref u- 

Jo/y  24,   J  950 

gees"  who  resided  in  China  on  July  1,  1948,  or  on 
June  16,  1950,  and  who  are  either  still  in  China 
or  have  departed  but  have  not  been  ijermanently 
resettled.  Most  of  the  beneficiaries  of  this  pro- 
vision are  the  so-called  Samar  refugees,  persons 
who  were  received  for  temporary  refuge  by  the 
Goverimient  of  the  Philippine  Islands  after  the  oc- 
cupation of  parts  of  China  by  Communist  forces. 
The  files  of  these  aliens  are  being  assembled  and 
forwarded  to  Manila,  pending  the  opening  of  an 
office  at  Samar.  Therefore,  affidavits  or  assur- 
ances, when  the  assurance  forms  become  available, 
may  be  sent  directly  to  the  American  Legation  at 
Manila.  Every  effort  is  being  made  to  hasten  the 
implementation  of  this  program,  but  technical  diffi- 
culties must  be  overcome  in  setting  up  offices  at 
Samar  and  in  providing  staff  and  equipment.  An- 
other serious  question  will  be  presented  in  con- 
nection with  this  group  as  far  as  the  security  check 
is  concerned  since,  in  many  instances,  security  files 
established  in  various  consular  offices  in  China 
have  been  destroyed. 

The  Department  is  making  efforts  to  have  the 
United  States  Public  Health  Service  examine  all 
applicants  at  Samar  at  the  earliest  possible  date, 
even  before  a  consular  office  is  actually  opened, 
thereby  eliminating  applicants  mandatorily  inad- 
missible on  medical  grounds. 

Greek  Refugees  and  Greek  Preferentiais 

Seven  thousand  five  hundred  visas  are  author- 
ized to  be  issued  to  Greek  refugees  and  2,500  to 
Greek  preferentiais.  The  Greek  refugees  are  na- 
tives of  Greece,  who  are  either  victims  of  military 
operations  in  Greece  by  the  Nazi  government  or 
by  military  operations  in  Greece  by  the  Com- 
munist guerrillas.  The  term  "native"  as  used  in 
the  Act  will  be  interpreted  to  mean  persons  born 
on  Greek  soil  and  other  persons  chargeable  to  the 
Greek  quota  under  the  Immigration  Act  of  1924. 

Greek  preferentiais  are  persons  who,  prior  to 
June  30,  1950,  were  residents  and  nationals  of 
Greece  and  are  eligible  for  admission  into  the 
United  States  as  first  or  second  preference  quota 
immigrants;  that  is,  as  the  wife  or  minor  child 
of  an  alien  admitted  for  permanent  residence,  or 
as  parent,  or  husband  by  marriage  subsequent  to 
January  1,  1948,  if  an  American  citizen;  or  as  a 
skilled  agriculturist,  as  provided  in  the  1924  act. 
The  term  "nationals  of  Greece"  will  be  interpreted 
as  including  any  person  who  is  a  citizen  of  Greece 
regardless  of  his  place  of  birth  or  the  quota  to 


which  he  is  chargeable  under  the  Immigration  Act 
of  1924, 

Many  more  persons  will  undoubtedly  qualify  for 
admission  under  these  provisions  than  the  number 
of  visas  authorized  for  them.  Greek  refugees  will 
be  issued  visas  in  the  order  of  their  registration, 
and  they  should  be  advised  to  register  with  the 
American  consular  offices,  in  the  district  where 
they  reside,  at  the  earliest  possible  date.  Imme- 
diate registration  is  also  advised  for  alien  wives 
and  minor  children,  of  lawfully  admitted  perma- 
nent residents  of  the  United  States,  who  intend  to 
apply  for  visas.  The  alien  relatives  in  the  United 
States  should  file  with  the  Immigration  and  Nat- 
uralization Service  Form  1-475  verifying  their 
lawful  admission,  which  form  will  then  be  sent 
to  the  appropriate  American  consular  office. 
American  citizens  who  desire  to  bring  in  their 
alien  parents  or  their  husbands  by  marriage  since 
January  1,  1948,  should  be  advised  to  file  with  the 
Immigi-ation  and  Naturalization  Service  Petition 
Form  1-133. 

European  Refugees  in  Europe 

This  class  consists  of  aliens  who,  between  Sep- 
tember 1,  1939,  and  January  1,  1949,  entered  an 
area  or  country  in  Europe  outside  Italy  or  the 
American,  British,  or  French  sectors  or  zones  of 
Germany  or  Austria.  In  order  to  qualify  under 
this  class,  the  aliens  must  establish  that  they  are 
persons  of  European  national  origin  displaced 
from  the  country  of  their  birth  or  nationality  or 
of  their  last  residence,  as  a  result  of  events  subse- 
quent to  the  outbreak  of  World  War  II ;  and  they 
must  be  unable  to  return  to  any  of  such  countries 
because  of  persecution  or  fear  of  persecution  on 
account  of  race,  religion,  or  political  opinions. 
Also,  they  must  not  have  been  firmly  resettled  in 
any  other  country.  Between  July  1,  1950,  and 
June  30, 1954,  50  percent  of  the  nonpreference  por- 
tion of  the  immigration  quotas  under  the  1924 
act  will  be  made  available  to  such  aliens.  Visas 
issued  to  them  are  in  addition  to  those  341,000 
authorized  under  the  Displaced  Persons  Act. 

In  determining  what  constitutes  "last  residence," 
the  Department  plans  to  define  in  its  regulations 
this  term  as  meaning  the  country  of  the  alien's 
residence  in  which  he  had  the  right  to  reside  per- 
manently and  the  right  to  work. 

The  issuance  of  quota  visas  under  the  Displaced 
Persons  Act  does  not  depend  on  the  availability 
of  quotas  since  future  quotas  are  charged  where 

the  current  quota  is  oversubscribed.  Therefore, 
the  incentive  to  an  alien  to  misrepresent  his  place 
of  birth  in  order  to  be  chargeable  to  a  more  favor- 
able quota  does  not  exist  in  the  case  of  eligible 
displaced  persons  who  may  be  issued  visas  under 
the  act.  Consular  officers  will,  therefore,  be  in- 
structed not  to  insist  upon  presentation  of  birth 
certificates  if  they  are  not  reasonably  procurable. 
An  exception  applies  only  in  cases  where  a  consul 
knows,  or  has  reason  to  believe,  that  an  applicant 
for  a  visa  was  not  born  in  the  country  he  lists  as 
his  country  of  birth.  In  such  case,  the  consul  will 
require  secondary  evidence  in  the  absence  of  a 
birth  certificate.  Also,  where  police  certificates 
are  not  reasonably  available,  as  a  rule,  the  consul 
will  accept,  instead,  character  references  and  other 

In  addition  to  the  major  groups,  there  is  another 
gi-oup  of  persons  benefiting  under  the  Displaced 
Persons  Act  of  1948,  as  amended,  for  whose  im- 
migration the  Department  carries  the  primary  and 
major  responsibility.  This  group  includes  alien 
children,  chargeable  to  the  German  or  Austrian 
quotas  under  the  provisions  of  the  Immigration 
Act  of  1924,  for  whom  section  12  of  the  Displaced 
Persons  Act,  as  amended,  contains  special  pro- 
vision for  the  issuance  of  visas.  In  order  to  qual- 
ify for  visa  issuance,  these  children  must  not  have 
passed  their  sixteenth  birthday  on  June  25,  1948, 
and  before  May  1,  1949,  must  have  been  legally 
adopted,  under  the  laws  of  the  country  in  which 
they  resided,  by  American  citizens  residing  abroad 
temporarily.  These  children  are  accorded  what 
might  be  called  a  "super  priority"  in  that  they  are 
entitled  to  be  issued  quota  visas  ahead  of  any  other 
group  specified  in  the  Immigration  Act  of  1924 
and  in  preference  to  any  alien  admissible  as  a 
quota  immigrant  under  the  Displaced  Persons  Act. 
This  provision  is  intended  to  facilitate  the  admis- 
sion of  children  adopted  by  members  of  the  armed 
forces  and  other  American  personnel  temporarily 
stationed  during  the  war  and  postwar  period  in 
Germany.  In  view  of  the  rather  stringent  date- 
line requirements,  possibly  few  qualified  appli- 
cants will  fall  in  this  category. 

Notwithstanding  the  top  priority  provided  for 
the  issuance  of  visas  to  these  children,  they  are 
classifiable  as  nonpreference  quota  immigrants. 
Tliese  children  are  exempt  from  paying  visa  fees 
and  are  also  exempt  from  the  provisions  of  the 
contract  labor  law  and  from  those  excluding  pro- 
visions of  the  1917  act  barring  the  admission  of 


Department  of  State  Bulletin 

aliens  whose  passage  has  been  paid  for  by  cor- 
liorations,  individuals,  or  others. 

In  regard  to  the  four  groups  discussed  earlier, 
that  is,  the  refugees  from  China,  Polish  veterans 
in  Great  Britain,  Greek  refugees  and  Greek 
preferentials,  and  European  refugees  in  Europe, 
a  few  general  observations  should  be  made. 

Spouses  and  unmarried  dependent  children 
under  21  years  of  age,  including  adopted  children 
and  stepchildren  of  pei-sons  qualifying  for  visa 
issuance  as  membere  of  any  of  the  four  groups 
described,  may  be  issued  visas  within  the  numeri- 
cal limitation  provided  for  each  group  if  such 
persons  are  otherwise  admissible  into  the  United 

The  Department  has  been  asked  whether  visas 
authorized  to  be  issued  to  these  special  groups  are 
exclusively  reserved  for  them  or,  if  not  used  by 
these  special  groups,  whether  they  can  be  used  by 
the  general  group  of  eligible  displaced  persons. 
It  was  not  the  intent  of  Congress  to  reserve,  ex- 
clusively, for  example,  18,000  visas  for  Polish 
veterans  in  England  if  there  should  not  be  so  many 
qualified  applicants.  On  the  other  hand,  consular 
officers  should  be  given  ample  time  to  issue  visas 
to  these  special  groups  before  they  can  reasonably 
conclude  that  there  are  not  any  more  qualified  ap- 
plicants and  that,  accordingly,  unused  numbers 
earmarked  for  them  can  be  made  available  to 
eligible  displaced  persons.  This  whole  question 
will  have  to  be  reviewed  after  the  programs  have 
been  under  way  for  some  time. 

The  Department  expects  to  publish  its  regula- 
tions very  shortly.  However,  in  order  to  give  full 
implementation  to  the  act,  personnel  changes  must 
be  made;  the  opening  of  new  offices  will  be  re- 
quired; additional  supplies  and  equipment  must 
be  obtained ;  the  proposed  regulations  must  be  ap- 
proved by  the  Department's  legal  adviser  and  by 
the  Attorney  General  before  they  can  be  signed 
by  the  Secretary  of  State ;  and  other  phases  of  the 
work  must  be  coordinated  with  appropriate  politi- 
cal officers  and  by  those  officials  of  the  Department 
who  are  charged  with  the  administration  of  the 
Foreign  Service. 

The  Visa  Division  is  a  technical  unit  which  is 
responsible  for  only  one  phase  of  consular  adminis- 
tration of  the  displaced  persons  program,  namely, 
supervision  of  the  execution  of  the  law  and  the 
regulations.  Administration  and  policy  are 
primarily  the  responsibility  of  other  units  of  the 

As  in  the  past,  the  Visa  Division  welcomes  any 
suggestion  from  public  or  voluntary  agencies,  from 
other  citizen  groups  interested  in  the  administra- 
tion of  the  program,  and  from  our  consular  per- 
sonnel. Many  valuable  and  helpful  suggestions 
have  already  been  received.  The  Department  of 
State  is  making  every  effort  to  resolve  procedural 
and  policy  questions  in  a  mutually  satisfactory 
way  and  in  a  way  that  it  believes  to  be  in  compli- 
ance with  the  intent  of  Congress. 

Scope  of  Atomic  Energy 
Program  Expanded 

Statement  hy  the  President 

[Released  to  the  press  hy  the  White  House  July  7] 

I  have  today  transmitted  to  the  Congress  a  sup- 
plemental appropriation  request  for  the  Atomic 
Energy  Commission  for  fiscal  year  1951,  in  the 
amount  of  260  million  dollars,  to  enable  the  Com- 
mission to  build  additional  and  more  efficient 
plants  and  related  f acilties  required  in  furtherance 
of  my  directive  of  January  31,  1950.  That  direc- 
tive called  upon  the  Commission  to  continue  its 
work  on  all  forms  of  atomic  weapons,  including  the 
hydrogen  or  fusion  bomb.  These  additional  plants, 
like  the  existing  facilities,  will  provide  materials 
which  can  be  used  either  for  weapons  or  for  fuels 
potentially  useful  for  power  purposes.  The  plants 
will  be  of  advanced  design,  and  their  operation 
will  provide  new  knowledge  that  will  speed  the 
progress  of  the  atomic  energy  program.  In  this 
new  undertaking,  the  Atomic  Energy  Commission 
has  my  complete  confidence,  based  upon  the  able 
and  vigorous  leadership  which  it  has  given  to  the 
atomic  energy  program  in  the  past.  We  shall, 
moreover,  continue  to  depend  heavily  upon  the  in- 
genuity and  cooperation  of  American  industry. 

The  expansion  in  the  scope  of  our  atomic  energy 
program  gives  added  emphasis  to  the  fact  that 
atomic  energy  has  great  potentialities  both  for  de- 
struction and  for  the  benefit  of  mankind.  From 
the  very  outset,  we  have  stood,  and  we  continue  to 
stand,  firm  in  our  desire  for  effective  international 
control  of  atomic  energy  to  insure  its  use  for  peace- 
ful purposes  only.  This  is  a  fundamental  objec- 
tive to  which  this  Government  and  the  vast 
majority  of  the  United  Nations  have  committed 
their  best  efforts.  Agreement  on  this  goal  would 
make  the  facilities  of  our  atomic  energy  enterprise 
fully  available  for  peaceful  purposes.  Until  this 
objective  is  achieved,  however,  we  must  strengthen 
our  own  defenses  by  providing  the  necessary 
atomic  energy  production  capacity. 

July  24,   7950 


Assistance  Placed  at  Disposal 
of  Unified  Command  in  Korea 

Statement  hy  Secretary  Acheson 
[Released  to  the  press  July  12] 

Fifty-six  out  of  59  members  of  the  United  Na- 
tions have  responded  to  the  Security  Council  reso- 
lution of  June  27  ^  which  recommended  that  the 
members  of  the  United  Nations  furnish  such  as- 
sistance to  the  Republic  of  Korea  as  may  be  neces- 
sary to  repel  the  armed  attack  and  to  restore  inter- 
national peace  and  security  in  the  area. 

Three  of  these  56,  the  U.S.S.R.,  Czechoslovakia, 
and  Poland,  rejected  the  resolution. 

Of  the  remaining  53  states  which  replied,  with 
possibly  one  exception,  all  have  given  at  least 
some  moral  support  to  the  resolution. 

Military  assistance  has  been  oifered  by  the 
United  Kingdom,  New  Zealand,  Australia,  Can- 
ada, the  Republic  of  China,  and  the  Netherlands. 
I  understand  that  other  states  are  considering 
making  offers.  Other  assistance,  chiefly  economic, 
has  already  been  offered  by  Thailand,  Norway, 
Denmark,  Chile,  the  Philippines,  and  Nicaragua. 

The  Security  Council  resolution  recommencling 
a  unified  command  under  the  United  States  was 
passed  on  July  7.^  The  machinery  has  not  yet  been 
created  to  take  full  advantage  of  the  vigorous  sup- 
port which  has  been  given  to  the  United  Nations 
resolutions.  It  is  expected  that  this  machinery 
will  be  set  up  in  the  very  near  future.  In  the 
meantime,  however,  naval  and  air  contingents 
from  Australia,  New  Zealand,  and  the  United 
Kingdom  are  already  operating  under  the  unified 
command,  and  contributions  from  Canada  and  the 
Netherlands  will  be  arriving  shortly. 

Many  states  have  indicated  a  desire  to  assist  but 
do  not  know  what  types  of  assistance  within  their 
capabilities  would  be  useful.  Advantage  will  be 
taken  of  these  offers  as  soon  as  channels  are  set  up. 

Your  prompt  and  accurate  reporting  of  the  situ- 
ation, the  dispatch  and  efficiency  with  which  you 
carried  out  the  evacuation  of  the  many  American 
citizens  for  whom  you  were  responsible,  and  the 
confidence  which  you  have  inspired  in  the  face  of 
the  unpi'ovoked  aggression  against  Korea  are  in 
the  finest  tradition  of  the  Foreign  Service. 

Korean  Foreign  Minister 
Expresses  Gratitude  for  U.S.  Aid 

[Released  to  the  press  July  15] 

Secretary  of  State  Acheson  has  received  the  following 
message,  dated  July  H,  from  the  Foreign  Minister  of  the 
Reinihlic  of  Korea,  Ben  C.  Limb. 

In  this  hour  of  extreme  trial  for  the  Korean 
nation,  I  want  you  to  know  how  deeply  grateful 
we  are  for  the  magnificent  fight  America  is  waging 
to  save  Korea  as  well  as  democracy,  and  for  your 
own  great  personnel  service  in  it.  Korea  is  very 
proud  to  be  the  front-line  ally  of  the  United  States 
and  the  United  Nations  and  most  emphatically 
pledges  all  in  her  power  to  win  a  lasting  victory 
for  tlie  cherished  common  cause. 

The  Government  and  people  of  Korea  feel  sure, 
and  I  know  you  do,  that  now  is  the  time  and  Korea 
is  the  place  to  demonstrate  to  the  world  once  and 
for  all  that  democracy  is  the  only  way  of  peaceful 
life,  and  that  despotic  Communism  must  be  de- 
cisively defeated.  The  morale  and  stamina  of  our 
forces  are  very  high.  The  fighting  ability  and 
the  material  power  of  the  American  and  Allied 
Forces  are  unsurpassed.  I  know  that  our  over-all 
victory  is  only  a  question  of  time.  We  are  all  very 
confident  here. 

Korea  will  never  forget  what  the  government 
and  people  of  America  are  doing  for  her;  it  will 
go  down  in  Korean  history  for  many  centuries  as 
a  great  turning  point  in  her  national  life.  I  shall 
highly  appreciate  it  if  you  will  kindly  convey  this 
sentiment  to  President  Truman,  the  Armed 
Forces,  and  the  people  of  the  United  States. 

Ambassador  Muccio  Commended 
on  Performance  of  Duty  in  Korea 

[Released  to  the  press  July  13] 

Secretary  Acheson  has  sent  the  following  message  to 
John  J.  Muccio,  United  States  Ambassador  to  the  Re- 
public of  Korea. 

The  President  has  asked  me  to  extend  to  you  and 
to  your  staff  his  appreciation  and  commendation 
for  your  courageous  and  effective  performance  of 
duty  since  the  onset  of  the  present  emergency  in 

'  Bulletin  of  July  3,  1950,  p.  7. 
'  Bulletin  of  July  17, 1950,  p.  83. 

United  States  Policy 
in  the  Korean  Crisis 

The  Department  of  State  released  on  July  20 
United  States  in  the  Korean  Crisis.  The  Depart- 
ment in  this  publication  presents  the  documents 
bearing  on  United  States  policy  toward  the  de- 
velopments in  Korea  in  order  to  place  full  and 
accurate  information  on  such  critical  events  before 
the  people  of  the  United  States  and  the  world  so 
that  they  may  reach  informed  judgments  concern- 
ing the  actions  of  this  Government. 

Included  in  this  account  is  a  narrative  describ- 
ing the  events  from  June  25, 1950  (Korean  time), 


Department  of  Slate  Bulletin 

when  the  North  Korean  forces  launched  an  all-out 
offensive  across  the  38tli  parallel  against  the  Re- 
public of  Korea  to  July  8  when  President  Truman 
complied  with  a  Security  Council  resolution,  re- 
questing all  nations  supplying  forces  and  other 
assistance  for  the  defense  of  the  Republic  of  Korea 
to  put  them  under  a  unified  command  headed  by 
the  United  States,  and  designated  General  Mac- 
Arthur  as  commanding  general  of  the  forces 
operating  in  Korea. 

More  than  a  himdred  accompanying  dociunents 
cover  the  period  from  June  25-July  11,  1950. 

United  States  Policy  hi  the  Korean  Crisis  (xi, 
68  pp.).  Department  of  State  publication  3922, 
may  be  purchased  from  the  Superintendent  of 
Dociunents,  U.S.  Government  Printing  Office, 
Washington  25,  D.C.,  for  25(4  a  copy. 

Soviet  World-Peace  Appeal 
Called  Propaganda  Trick 

Stateme7\t  hy  Secretary  Acheson 
[Released  to  the  press  July  12] 

I  am  sure  that  the  American  people  will  not  be 
fooled  by  the  so-called  world-peace  appeal  or 
"Stockholm  Resolution"  now  being  circulated  in 
this  country  for  signatures.  It  should  be  recog- 
nized for  what  it  is — a  propaganda  trick  in  the 
spurious  "peace  offensive    of  the  Soviet  Union. 

The  resolution  was  adopted  last  March  at  the 
Stockholm  session  of  the  Partisans  of  Peace,  an 
international  organization  established  by  the 
Communists,  and  the  campaign  for  signatures  in 
the  United  States  is  being  actively  promoted  by 
the  Communist  Party. 

An  analysis  of  the  petition  shows  that  it  tries  to 
do  two  things:  (1)  promote  the  unenforceable 
Soviet  proposals  concerning  atomic  energy,  ignor- 
ing the  effective  control  plan  approved  by  the  over- 
whelming majority  of  the  United  Nations  and 
opposed  only  by  the  Soviet  Union  and  four  of  its 
satellites;  and  (2)  center  attention  on  the  use  of 
atomic  weapons  by  branding  as  a  war  criminal  the 
first  nation  to  use  atomic  weapons,  ignoring  the 
aggression  in  other  forms  presently  being  prac- 
ticed by  the  Communists. 

As  for  the  second  point,  namely,  that  the  first 
nation  to  use  atomic  weapons  will  liave  committed 
a  crime  against  humanity  and  should  be  branded  as 
a  war  criminal,  it  is  obvious  that  this  is  an  utterly 
cynical  begging  of  the  question.  The  real  crime 
against  humanity  is  aggression  and,  in  particular, 
the  deliberate  resort  to  armed  aggression  in  defi- 
ance of  the  United  Nations.  The  war  criminals 
are  the  people  who  sanction  such  action.  The 
weapons  used  are  quite  incidental  to  the  crime. 
Thus,  the  Communists  throughout  the  world  have 

given  the  lie  to  the  Stockholm  proposal  in  their 
support  of  North  Korean  aggression. 

Just  before  the  North  Korean  armed  forces 
launched  their  unprovoked  attack  against  the  Re- 
public of  Korea,  more  than  half  the  population  of 
North  Korea  was  reported  to  have  signed  the  peti- 
tion. This  illustrates  better  than  anything  else 
the  basic  hypocrisy  of  the  Communist  "peace 

Soviet  Tactics  Again  Stall 
Negotiations  on  Austrian  Treaty 

Statement  hy  Secretary  Acheson 
[Released  to  the  press  July  12] 

The  deputies  for  the  Austrian  treaty  negotia- 
tions met  in  London  on  July  10  for  their  256th 
meeting.  In  obvious  preparation  for  this  meeting, 
the  Soviet  Government  on  July  8  sent  to  the  Amer- 
ican Embassy  in  Moscow  a  second  note  regarding 
the  Allied  position  in  Trieste.  This  second  note 
merely  repeats  the  unfounded  allegations  in  the 
Soviet  note  of  April  20. 

This  Government's  I'eply  of  June  16  ^  adequately 
answered  those  allegations.  There  is,  of  course, 
no  valid  reason  for  linking  the  two  questions,  but, 
true  to  the  Soviet  propaganda  pattern,  the  Soviet 
deputy  for  the  Austrian  treaty  negotiations,  at  the 
July  10  meeting,  instead  of  discussing  the  remain- 
ing unagreed  articles  of  the  Austrian  treaty, 
utilized  the  meeting  to  read  a  prepared  statement 
on  Trieste. 

This  Soviet  action  once  again  emphasizes  that 
the  Soviet  Government  does  not  wish  to  conclude 
an  Austrian  treaty  at  this  time  despite  the  pledge 
which  it  made  in  the  Moscow  Declaration  in  1943 
to  reestablish  Austria  as  a  free  and  independent 
nation.^  The  efforts  of  the  Western  deputies  to 
negotiate  and  conclude  the  treaty  were  unsuccess- 
ful and,  in  view  of  the  impasse,  the  -deputies  ad- 
journed, with  the  Western  deputies  a^eeing  to 
meet  again  on  September  7.  The  Soviet  deputy 
stated  that  it  would  be  necessary  for  him  to  refer 
to  his  Government  for  consideration  the  Western 
proposal  to  meet  again  on  September  7. 

The  British,  French,  and  United  States  Foreign 
Ministers  agreed  at  their  meeting  in  London  last 
May  that  their  respective  Governments  are  ready 
at  any  time  to  settle  without  delay  all  outstanding 
issues  of  the  treaty  provided  that  this  will  defi- 
nitely bring  about  agreement  on  the  treaty  as  a 
whole.  ^    The  principles  agreed  upon  by  the  three 

'For  text  of  the  U.S.  note,  answering  the  Soviet  note 
of  April  20,  see  Bulletin  of  June  26,  1950,  p.  1054. 
'  Bulletin  of  Nov.  6,  1943,  p.  311. 
•  Bulletin  of  June  26,  1950,  p.  1054. 

July  24,   1950 


Foreign  Ministers  were  communicated  to  the  So- 
viet Government  on  June  12  *  in  the  hope  that  the 
Soviet  Government  would  agree  to  associate  itself 
with  the  program  and  that  more  definite  progress 
in  the  solution  of  the  Austrian  problem  might  thus 
be  achieved.  No  reply  has  been  received  from  the 
Soviet  Government  to  this  approach. 

The  only  true  basis  on  which  Austria  can  exer- 
cise full  sovereignty  is  by  four-power  agreement 
and  the  withdrawal  from  Austrian  soil  of  all  forces 
of  occupation.  It  is  fundamental  that  the  Gov- 
ernment of  the  United  States  desires  the  achieve- 
ment of  this  objective. 

Soviet  actions  designed  to  prevent  conclusion  of 
the  Austrian  treaty  must  necessarily  result  in  a 
delay  in  the  fulfillment  of  Austria's  desire,  with 
which  this  Government  is  in  full  sympathy,  to 
enjoy  complete  independence.  Under  these  cir- 
stances,  the  three  Western  Governments  are  en- 

deavoring, within  the  framework  of  existing 
four-power  agreements,  to  carry  out  such  measures 
as  may  properly  be  taken  to  strengthen  the  au- 
thority of  the  Austrian  Government  and  to  lighten 
Austria's  occupation  burdens. 

It  should  be  borne  in  mind,  in  this  connection, 
that  any  steps  heretofore  taken  or  to  be  taken  by 
this  Government  to  reduce  Austria's  occupation 
burdens  are  not  regarded  as  a  substitute  for  the 
treaty.  Our  actions,  in  this  respect,  are  endeavors 
on  our  part  to  take  such  constructive  measures  as 
may  properly  be  taken,  pending  conclusion  of  the 
treaty,  to  fulfill  our  obligations  under  the  Control 
Agreement  of  1946  ^  which  provides  that  the 
Allied  Commission  for  Austria  shall  assist  the 
freely  elected  Government  of  Austria  to  recreate 
a  sound  and  democratic  national  life  and  to  assume 
as  quickly  as  possible  full  control  of  its  own  affairs 
of  state. 

Soviet  Delay  in  Repatriating  German  War  Prisoners 


[Released  to  the  press  July  141 

Following  is  the  text  of  a  note  delivered  today  to  the 
Soviet  Foreign  Office  by  the  American  Embassy  at  Mos- 
0010  on  the  subject  of  prisoners  of  war  still  in  Soviet 

The  Ambassador  of  the  United  States  of  Amer- 
ica presents  his  compliments  to  the  Minister  of 
Foreign  Affairs  of  the  Union  of  Soviet  Socialist 
Republics  and  on  instructions  for  his  Govern- 
ment has  the  honor  to  refer  to  the  Soviet  press 
announcement  of  May  5,  1950,  stating  that  the 
repatriation  of  German  prisoners  of  war  from  the 
Soviet  Union  to  Germany  has  been  completed  with 
the  exception  of  9,717  persons  convicted  of  grave 
war  crimes,  3,815  persons  whose  alleged  war  crimes 
are  in  the  process  of  investigation,  and  14  persons 
detained  owing  to  illness. 

The  Government  of  the  United  States  shares  the 
shock  and  concern  of  the  German  people  over  this 
public  announcement,  and  is  unable  to  give  cre- 
dence to  the  Soviet  statement  that  there  are  only 
13,546  German  prisoners  of  war  in  its  custody. 
These  figures  are  completely  at  variance  with  the 
information  in  the  possession  of  the  Govenunent 
of  the  United  States,  showing  that  large  numbers 
of  German  prisoners  of  war  known  to  have  been  in 

*  Bulletin  of  July  10,  1950,  p.  74. 
'  Bulletin  of  July  28,  1946,  p.  175. 

the  Soviet  custody  have  not  yet  been  returned  to 
their  homes. 

The  Soviet  Government  is  again  informed  that, 
in  accordance  with  the  agreement  reached  by  the 
Council  of  Foreign  Ministers  at  Moscow  in  April 
1947  for  the  repatriation  before  December  31, 
1948,  of  all  German  prisoners  of  war  in  the  custody 
of  the  four  occupying  powers,  the  United  States, 
the  United  Kingdom,  and  France  did  in  fact  re- 
patriate all  German  prisoners  of  war  in  their 
custody  prior  to  the  agreed  date.  The  United 
States,  on  its  part,  actually  completed  its  program 
of  repatriation  of  German  prisoners  of  war  as 
early  as  June  30,  1947. 

Tlie  Government  of  the  Soviet  Union  has  repeat- 
edly failed  to  respond  to  requests  for  pertinent 
information  of  its  actions  under  the  agreement  of 
April  1947.  On  January  24, 1949,  the  Soviet  Min- 
ister of  Foreign  Affairs,  in  acknowledging  receipt 
of  one  of  these  inquiries,  admitted  that  an  unspec- 
ified number  of  German  prisoners  of  war  were  still 
held  in  Soviet  custody,  failing  however  to  furnish 
any  information  concerning  them,  but  stating 
unequivocally  that  the  Soviet  Government  would 
complete  the  repatriation  of  German  prisoners  of 
war  remaining  in  its  custody  during  1949.  It  is 
clear  from  the  announcement  of  May  5,  1950,  that 
the  Soviet  Government  has  failed  to  honor  this 


Department  of  State  Bulletin 

commitment  just  as  it  lias  failed  to  honoi"  its  earlier 
commitment  of  April  1947.  In  this  connection, 
the  Government  of  the  United  States  desires  to 
make  it  plain  that  the  arbitrary  reclassification 
by  the  Soviet  Government  of  prisoners  of  war  as 
civilians  would  not,  of  course,  have  the  effect  of 
relieving-  the  Soviet  Government  of  its  obligation 
to  return  these  persons  to  their  homes  and  families. 
By  its  delay  in  repatriating  these  German  pris- 
oners of  war,  and  by  its  repeated  refusal  to  furnish 
information  concerning  them,  the  Soviet  Govern- 
ment has  caused  suffering  and  anxiety  for  large 
numbers  of  prisoners  of  war  in  the  Soviet  custody 
and  their  relatives  and  friends,  and  has  demon- 
strated a  complete  disregard  for  the  fundamental 
human  rights  of  the  unfortunate  persons  con- 
cerned. The  Soviet  Government  alone  has  the 
power  to  mitigate  this  suffering,  and  it  could  do  so 
by  taking  the  following  steps : 

(1)  Furnish  full  information  on  the  identifica- 
tion of  the  9,7l7  persons  alleged  to  have  been  con- 
victed of  grave  war  crimes,  the  3,815  persons  whose 
alleged  war  crimes  are  in  the  process  of  investiga- 
tion, and  the  14  persons  said  to  be  under  treatment 
for  illness,  who  are  still  retained  by  the  Soviet 
Union  as  stated  in  the  Soviet  announcement  of 
May  5.  This  information  would  include  the 
present  location  and  treatment  of  these  persons, 
data  on  the  sentences  imposed  on  those  said  to  have 
been  convicted  of  war  crimes,  and  the  status  of  the 
investigations  pending,  as  well  as  information 
with  respect  to  measures  taken  by  the  Soviet 
Government  to  ensure  the  right  of  these  prisoners 
of  war  to  correspond  with  their  families  in 

(2)  In  accordance  with  the  Geneva  Convention 
of  July  27,  1929,  to  which  the  Soviet  Union  is  a 
party,  to  provide  information  on  the  number, 
identity,  date  of  death  and  place  of  burial  of  pris- 
oners of  war  and  civilian  internees  who  have  died 
in  captivity  in  the  Soviet  Union  or  in  transit. 

(3)  Permit  investigation  in  the  Soviet  Union 
by  an  impartial  international  body  in  order  that 
the  actual  fate  of  the  prisoners  of  war  known  to 
have  been  in  Soviet  custody  may  be  ascertained. 
For  this  purpose,  the  Government  of  the  United 
States  suggests  the  appointment  of  an  ad  hoc  com- 
mission designated  by  the  United  Nations,  or  a 
^roup  composed  of  representatives  of  the  four 
powers  now  occupying  Germany,  or  representa- 
:ives  of  neutral  powers,  or  any  other  group  mutu- 
illy  acceptable.     It  is  noted  in  this  connection  that 
he   United    States,   the   United   Kingdom,   and 
France,  at  the  time  when  they  still  had  German 
prisoners  of  war  in  their  custody,  furnished  full 
nformation   concerning  them  to  the   interested 
)arties,  and  permitted  full  and  impartial  access  to 
he  prisoners  of  war  by  international  agencies. 

In  concerning  itself  at  this  time  with  the  ques- 
ion  of  German  prisoners  of  war,  a  question  on 
vhich    the    Soviet   Government   has    made    and 

broken  specific  commitments,  the  Government  of 
the  United  States  does  not  overlook  the  equally 
disturbing  parallel  situation  concerning  the  So- 
viet failure  to  repatriate,  or  to  account  for,  the 
numerous  nationals  of  the  German-occupied  coun- 
tries who  were  taken  prisoners  during  the  war,  or 
who  were  brought  to  the  U.S.S.K.  as  civilian  in- 

Information  concerning  the  action  which  the 
Soviet  Government  is  prepared  to  take  on  this 
matter  would  be  welcomed  by  the  Government  of 
the  United  States,  which  would  be  willing  to  coop- 
erate in  any  appropriate  way. 
*     *     * 

The  British  and  French  Embassies  are  also  com- 
municating with  the  Soviet  Government  on  this 

As  is  well-known,  the  continued  detention  of 
German  prisoners  of  war  in  the  Soviet  Union  has 
been  a  matter  of  concern  to  the  United  States 
Government  ^  and  to  the  Governments  of  the 
United  Kingdom  and  France  for  a  considerable 
period.  The  Foreign  Ministers  of  the  United 
States,  the  United  Kingdom,  and  France  issued  a 
statement  at  London  on  May  12  with  respect  to 
this  subject  which  stated  that  the  Foreign  Min- 
isters had  agreed  to  take  all  possible  steps  to  ob- 
tain information  bearing  on  the  fate  of  prisoners 
of  war  and  civilians  not  yet  repatriated  from  the 
Soviet  Union  and  to  bring  about  repatriation  in 
the  largest  possible  number  of  cases. 

Americans  Visiting  Abroad 

Ernest  Carroll  Faust,  head  of  the  Division  of 
Parasitology,  Tulane  University  School  of  Medi- 
cine, New  Orleans,  Louisiana,  will  lecture  at  the 
University  of  Chile  for  the  summer  term. 

Clifford  H.  MacFadden,  assistant  professor  of 
geography,  at  the  University  of  California,  Los 
Angeles,  will  teach  geography  at  the  University 
of  Ceylon,  Colombo,  Celyon,  for  1  year. 

Francis  M.  Rogers,  associate  professor  of  ro- 
mance languages  and  literature  and  dean  of  the 
graduate  school  of  arts  and  sciences,  Harvard 
University,  will  lecture  for  C  weeks  in  Brazil. 

John  M.  Henderson,  of  the  Division  of  Public 
Health,  Columbia  University  Medical  School,  will 
serve  as  visiting  consultant  at  various  schools  of 
public  health  and  confer  with  public  health  offi- 
cials in  Argentina,  Brazil,  and  Chile  for  3  months 
this  summer. 

These  visits  have  been  made  possible  through 
grants-in-aid  awarded  by  the  Department  of  State. 

1  For  texts  of  previous  communications  on  the  subject 
of  German  prisoners  of  war  in  Soviet  custody,  see  Bitl- 
LETiN  of  Jan.  16,  1949,  p.  77;  Mar.  27,  1949,  p.  389;  June 
26,  1949,  p.  824. 

o/y  24,   1950 


Soviet  "Beetle''  Charge  Labeled  Ridiculous  Propaganda 


[Released  to  the  press  July  6] 

The  Soviet  Government,  in  a  note  dated  June 
30, 1950,  has  identified  itself  with  ridiculous  propa- 
ganda statements  emanating  for  several  weeks  past 
from  Eastern  European  Communist  regimes  alleg- 
ing that  the  occurrence  of  potato  bugs  in  certain 
areas  of  Eastern  Germany  has  been  caused  by  the 
"dropping"  of  these  insects  fi'om  American  air- 

It  is  interesting  to  note  that  the  Soviet  propa- 
gandists have  borrowed  this  whole  invention  from 
the  Nazis  who  during  the  war  used  to  level  the 
same  fantastic  charge  against  Allied  airplanes. 

The  facts — of  which  the  Soviet  Government  was 
undoubtedly  aware  when  making  ita  charges^are 
that  potato  bugs,  or  Colorado  beetles,  have  existed 
in  Germany  since  before  the  war;  have  been 
spreading  rapidly  in  wartime  due  to  the  absence 
of  effective  countermeasures ;  and  were  recognized 
as  a  serious  threat  to  the  East  zone  economy  by 
the  Eastern  German  puppet  government  several 
months  prior  to  the  date  of  the  alleged  American 
bug  offensive.  A  decree  by  the  so-called  German 
Democratic  Republic,  dated  March  2, 1950,  ordered 
the  initiation  of  a  major  antipotato  beetle  cam- 
paign throughout  the  entire  area  of  the  Soviet 
zone.  Special  measures  were  to  be  concentrated 
in  a  belt  following  the  Czechoslovak  and  Polish 
borders,  apparently  in  an  attempt  to  protect  east- 
ern Europe  and  the  U.S.S.R.  from  further  beetle 
invasions.  This  problem  had  been  one  of  major 
concern  to  the  Polish  authorities  as  early  as  May 
1949  when  a  nation-wide  conference  was  held  in 
Warsaw,  devoted  to  the  combating  of  plant  pests, 
especially  the  potato  beetle.  Furthermore,  the 
Soviet  Government  itself  issued  a  pamphlet  en- 
titled. The  Colorado  Potato  Beetle^  signed  for 
printing  May  16 — 6  days  before  United  States 
planes  are  supposed  to  have  "dropped"  the  beetles 
over  Eastern  Germany — in  which  the  population 
of  the  Soviet  Union  was  instruct-ed  to  take  special 
precautions  against  an  invasion  of  potato  bugs 
from  Germany. 

Manifestly,  the  Eastern  German  authorities 
have  been  unable  to  cope  with  the  problem.    On 


May  17,  the  official  paper  of  the  Socialist  Unity 
(Communist)  Party  for  Saxony-Anhalt  published 
an  appeal  to  the  population,  betraying  distinct 
alarm  at  long  last  to  institute  search  parties  and 
other  countermeasures.  The  appeal  contains  this 
sentence:  "The  annual  increase  of  swarms  can  be 
traced  to  the  fact  that  searches  and  chemical  coun- 
termeasures have  repeatedly  and  consistently  been 
instituted  too  late,  in  spite  of  all  orders."  Mean- 
while, the  potato  bug  has  spread  farther  into  East- 
ern Europe;  and  Soviet-German  authorities  are 
faced  with  one  other  problem :  the  threat  of  a  seri- 
ous potato  shortage  this  year,  caused  by  a  number 
of  factors  besides  the  bug,  such  as  inadequate  agri- 
cultural methods  and  last  year's  poor  crop  in 
Eastern  Germany  which  compelled  the  peasants 
to  consume  a  substantial  portion  of  seed  potatoes 
during  the  planting  season. 


[Released  to  the  press  July  7] 

The  followinff  is  the  text  of  the  United  States  reply  to 
the  Soviet  note  of  June  30  alleging  American  responsibility 
for  potato  crop  infestation  in  East  Qermany.  The  United 
States  note  was  delivered  to  the  Soviet  Foreign  Ministry 
hy  the  United  States  Embassy  at  Moscow  today. 

While  reluctant  to  give  weight  and  credence  to 
this  communication  (The  Soviet  Note  of  June  30) 
as  an  official  message  of  the  Ministry  of  Foreign 
Affairs  of  the  Union  of  Soviet  Socialist  Republics 
the  Government  of  the  United  States  nevertheless 
now  feels  obliged,  in  view  of  the  extraordinary  al- 
legations contained  therein,  to  point  out  that  the 
Ministry  of  Foreign  Affairs  has  neglected  to  ac- 
quaint itself  with  the  most  elementary  and  gener- 
ally known  facts  of  the  situation  with  which  its 
communication  purports  to  deal. 

It  is  apparent  that  the  Ministry  has  not  even 
troubled  to  consult  with  competent  Soviet  and 
Eastern  European  experts  familiar  with  the  his- 
tory of  potato  crop  infestation  in  Eastern  Europe 
and  whose  description  of  the  progress  of  this 
infestation  over  a  period  of  years  has  appeared  in 
official  Soviet  and  other  Eastern  European  pub- 

Department  of  State  Bulletin 


This  Government  prefers  to  consider  that  the 
Ministry  has  neglected  to  consult  even  its  own  of- 
ficial publications  on  this  subject  rather  than  to 
believe  that  the  Soviet  authorities  are  trafficking 
lightly  for  propaganda  or  other  purposes  in  mat- 
ters vital  to  the  welfare  of  the  people  of  Eastern 

What  has  happened  in  obvious  enough :  the  Com- 
munist authorities  in  Eastern  Germany  have  failed 
to  bring  the  bug  problem  under  control  and  pro- 
tect the  agriculture  of  other  satellite  countries  and 
of  the  Soviet  Union.  Moreover,  they  are  in  need 
of  an  excuse  for  the  anticipated  shortage.  Instead 
of  holding  them  responsible  for  the  hardships  their 
failure  will  cause  to  the  people  of  Eastern  Ger- 
many and  Eastern  Europe,  the  Soviet  Government 
has  resorted  to  a  well-known  device  and  invented 
a  "saboteur" — this  time  in  the  guise  of  the  United 
States  Air  Force.  Soviet  and  German  Communist 
authorities  are  undoubtedly  aware  of  the  fact  that 
American  aircraft  have  strictly  and  consistently 
observed  the  established  corridor  and  have  at  no 
time  flown  over  the  areas  in  which  the  beetles  are 
alleged  to  have  been  dropped. 

In  the  present  world  situation,  fraught  with  ex- 
plosive tensions,  the  Soviet  Government  has  chosen 
to  poison  the  atmosphere  even  further  with  one  of 
the  most  fantastic  fabrications  that  has  ever  been 
invented  by  one  government  against  another.  In 
this  whole  absurd  and  ridiculous  propaganda  in- 
vention, this  is  the  one  fact  that  deserves  to  be 


[Released  to  the  press  July  7] 

The  follotmng  is  the  text  of  a  note  sent  by  the  Amer- 
ican Embassy  at  Praha  to  the  Czechoslovak  Foreign 
Office  on  July  6  with  reference  to  Cxechoslorak  allega- 
tions concerning  the  potato  bug. 

The  American  Embassy  presents  its  compli- 
ments to  the  Czechoslovak  Ministry  of  Foreign 
Affairs  and  has  the  honor  to  make  the  following 
observations  with  reference  to  the  potato  bug : 

To  the  extent  that  the  potato  bug  represents  a 
Czechoslovakian  domestic  problem,  it  is  not  a 
matter  of  concern  to  the  American  Embassy, 
which  nevertheless  expresses  its  sympathy  over 
the  damage  to  Czechoslovak  agricultural  produc- 
tion caused  by  the  insect  in  question. 

To  the  extent,  however,  that  efforts  have  been 
made  in  Czechoslovakia  to  connect  the  United 
States  with  the  presence  of  the  potato  bug  in  this 
country,  the  matter  is  of  legitimate  interest  to  the 
American  Embassy,  which  declares  that  allega- 
tions to  the  effect  that  the  United  States  encour- 
ages the  depredations  of  the  potato  bug  in  Czecho- 
slovakia, or  that  the  United  States  has  sought 
clandestinely  to  introduce  the  potato  bug  into 
Czechoslovakia,  are  false  and  preposterous. 

The  Embassy  ventures  to  suggest  the  inherent 

unsuitability  of  the  potato  bug  (doryphora  de- 
comlineata)  as  an  instrument  of  national  policy. 
The  Embassy  doubts  whether  the  potato  bug, 
even  in  its  most  voracious  phase,  could  nibble 
effectively  at  the  fabric  of  friendship  uniting  the 
Czechoslovak  and  the  American  people. 

The  Embassy  avails  itself  of  this  opportunity 
to  renew  to  the  Ministry  the  assurance  of  its 
highest  consideration. 

U.S.-Spain  Amend  Air  Agreement 

[Released  to  the  press  June  23] 

Negotiations  between  delegations  of  the  Gov- 
ernments of  the  United  States  and  Spain  to  amend 
the  air  transport  services  agreement  between  the 
two  Governments  signed  on  December  2,  1944, 
were  concluded  today. 

After  a  cordial  interchange  of  the  viewpoints 
of  both  delegations,  it  has  been  agreed  that  the 
agreement  shall  be  amended  in  the  following 
respects : 

Air  carriers  of  Spain  will  be  permitted  to  con- 
duct services  to  the  United  States  over  the  follow- 
ing routes : 

Route  1 

A  route  from  Spain  to  San  Juan,  Puerto  Rico, 
via  Lisbon,  the  Azores  and  Bermuda,  and  Caracas ; 
in  both  directions. 

Route  2 

A  route  from  Spain  via  Lisbon,  the  Azores  and 
Bermuda  to  Miami,  and  beyond  Miami  (a)  to 
Mexico  and  (b)  to  Habana  and  points  beyond  in 
the  Caribbean  area  and  the  west  coast  of  South 
America ;  in  both  directions. 

Under  the  existing  agreement,  the  United  States 
has  two  routes  through  Spain : 

Route  1 

A  route  from  New  York  through  Lisbon  to 
Barcelona,  proceeding  therefrom  to  Marseilles, 
and  possible  points  beyond,  in  both  directions. 

Route  2 

A  route  from  New  York  through  Lisbon  to 
Madrid  proceeding  therefrom  (a)  to  Rome  and 
points  beyond  and  (b)  to  Algiers  and  points 
beyond,  in  both  directions. 

The  United  States  route  to  Spain  via  South 
America  and  Africa  contained  in  the  original 
agreement  will  be  deleted,  inasmuch  as  United 
States  civil  air  carriers  now  have  no  interest  in 
using  this  route. 

Articles  dealing  with  machinery  for  arbitration 
and  determination  of  rates  were  added  to  the 

iM\i  24,  1950 


The  Need  for  an  International  Trade  Organization 

Views  of  Maurice  J.  Tobin 
Secretary  of  Labor 

The  following  letter  dated  March  10,  1950,  was  sent 
from  the  Secretary  of  Labor,  Maurice  J.  Tobin,  to  the 
Chairman  of  the  House  Committee  on  Foreign  Affairs, 
John  Kee. 

Dear  Congressman  Kee:  On  May  24,  1949,  I 
submitted  to  your  Committee  a  statement  of  my 
views  on  the  question  of  United  States  approval  of 
the  Charter  for  an  International  Trade  Organiza- 
tion. I  would  like  to  take  this  opportunity  to 
supplement  my  earlier  statement  with  respect  to 
events  which  have  occurred  since  the  original  state- 
ment was  made. 

The  problem  of  maintaining  full  employment 
was  the  subject  of  intensive  discussion  at  the  1949 
meetings  of  the  International  Labor  Conference 
and  the  Economic  and  Social  Council  of  the  United 
Nations,  and  at  the  current  (1950)  meetings  of  the 
Economic  and  Employment  Commission  of  the 
Economic  and  Social  Council.  The  intensity  of 
this  discussion  was  to  some  extent  a  reflection  of 
events  in  the  United  States  and  of  concern  as  to 
the  course  which  these  events  would  take.  Despite 
the  basic  health  of  our  economy,  the  prospects  of 
its  continued  prosperity,  and  the  clearly  tempo- 
rary character  of  the  1949  recession,  fear  was 
widely  expressed  that  any  drying-up  of  American 
purchasing  power  would  curtail  foreign  sales  in 
our  markets,  with  serious  resulting  effects  upon 
the  other  economies  involved. 

Under  these  circumstances,  the  renewing  of  our 
pledge  to  maintain  full  employment  at  home,  as 
set  forth  in  the  Employment  Chapter  of  the  Ito 
Charter,  is  clearly  appropriate.  The  taking  of 
other  steps  to  expand  world  trade,  on  a  multilat- 
eral basis,  as  envisaged  in  the  Charter,  is  also  es- 
sential as  an  adjunct  in  the  international  field  to 
the  measures  which  we  take  at  home  to  maintain 
full  employment. 

Specifically,  the  Employment  Chapter  of  the 
Charter  obligates  the  United  States  to  take  meas- 
ures with  a  view  to  achieving  and  maintaining  full 
employment  through  actions  appropriate  to  our 
own  political,  economic,  and  social  institutions. 


Such  a  commitment  is  fully  in  keeping  with  our 
own  domestic  policy  of  maintaining  a  high  and 
productive  level  of  employment  as  set  forth  in  the 
Employment  Act  of  1946.  The  furtherance  of  this 
aim  throughout  the  world  should  do  much  to  aid  in 
the  expansion  of  world  trade  and  the  general  rais- 
ing of  living  standards. 

I  want  to  repeat  my  earlier  statement  to  the 
Committee  that  the  Employment  chapter  of  the 
Charter  preserves  our  right  to  seek  full  employ- 
ment with  the  minimum  of  Government  interven- 
tion that  we  ourselves  determine  to  be  wise.  In 
other  words,  in  accepting  the  Charter  we  would 
not  be  agreeing  to  any  planning  or  control  that 
we  ourselves  do  not  find  to  be  necessary.  We 
would  not  be  agreeing  to  give  the  other  nations 
of  the  world  any  power  to  compel  us  to  take  steps 
that  we  ourselves  are  unwilling  to  take.  We 
would  remain  free  to  devise  our  own  policies  and 

The  employment  pledge  is  very  specific  on  this 
point  stating  that: 

"Each  member  shall  take  action  designed  to 
achieve  and  marntain  full  and  productive  em- 
ployment and  large  and  steadily  growing  de- 
mand within  its  own  territory  thru  measures 
ap-propriate  to  its  political,  economic  and  social 
institutions. ^^     (Italics  supplied.) 

Our  freedom  of  domestic  action  can  be  well 
illustrated  by  reference  to  the  specific  proposals 
for  maintaining  full  employment  which  have  been 
referred  to  or  discussed  at  international  meetings 
during  the  last  year.  At  none  of  the  sessions  was 
there  any  question  that  a  country's  choice  of  meth- 
ods was  its  own,  and  that  it  would  remain  so 
should  the  Charter  for  an  International  Trade 
Organization  come  into  effect.  There  is  now  be- 
fore the  Employment  Commission  of  the  Eco- 
nomic and  Social  Council,  for  example,  a  report 
by  a  group  of  experts  appointed  by  the  Secre- 
tary-General of  the  United  Nations  concerning 
further  steps  which  the  nations  of  the  world  might 

Department  of  State  Bulletin 

take  to  aid  in  tlie  maintenance  of  full  employment, 
entitled  "National  and  International  Measures 
for  Full  Employment."  This  report  deserves  a 
great  deal  of  study.  Many  of  its  details  include 
things  that  we  now  do  under  the  Employment  Act 
of  194G;  others  would  require  further  legislative 
action.  It  is  unmistakably  clear,  however,  that 
whatever  our  reaction  to  tlie  report,  we  are  not 
committed  to  it  or  any  part  of  it  until  and  unless 
we  ourselves  decide  tliat  it  has  merit.  This  is 
the  case  now ;  it  would  continue  to  be  the  case 
after  the  Ito  Charter  comes  into  effect. 

The  months  since  the  submission  of  my  earlier 
statement  have  also  seen  the  development  of  the 
Point  IV  Program  as  one  of  the  most  significant 
parts  of  our  foreign  economic  policy.  This  pro- 
gram is  a  voluntary  program  on  the  part  of  the 
United  States  which  pursues  further  the  same 
broad  objectives  as  the  Economic  Development 
Chapter  of  the  Charter.  The  role  of  the  Inter- 
national Trade  Organization  in  the  field  of  eco- 
nomic development  would  buttress  and  facilitate 
the  sound  realization  of  the  program  which  we 
are  initiating.  The  Ito  Charter  as  a  whole 
would  ensure  that  the  products  of  economic  de- 
velopment have  a  maximum  opportunity  to  move 
in  the  channel  of  world  trade  and  to  contribute 
to  a  general  raising  of  world  living  standards. 


I  appreciate  this  opportunity  to  present  my 
views  on  the  Charter  for  an  International  Trade 
Organization  to  the  members  and  have  heard  in 
some  detail  of  the  basic  problems  which  were 
involved  in  its  negotiation  from  members  of  the 
Department  of  LaJbor  staff  who  participated  in  the 
drafting  conferences  which  led  to  the  document 
presented  to  you  for  acceptance. 

Interrelations  of  Labor  and  Trade 

I  regard  the  Charter  as  a  great  achievement  in 
an  important  field  and  a  forward  step  in  foreign 
relations.  Not  only  does  it  provide  for  an  inter- 
national forum  in  which  trade  matters  can  be 
discussed  and  differences  ironed  out,  but  agree- 
ment has  been  reached  on  many  important  points 
of  substance  in  a  way  which  should  strengthen 
the  economic  base  upon  which  healthy  world  trade 
and  prosperity  are  founded.  These  points  of 
agreement,  affecting  matters  of  basic  employment 
policy,  the  problems  of  economic  development,  the 
multitude  of  commercial  problems  (such  as  those 
involving  the  nondiscriminatory  use  of  quotas  and 
internal  taxation),  the  special  problems  of  inter- 
governmental commodity  agreements,  and  inter- 
national cartels,  have  in  every  case  the  merit  of 
minimizing  restrictions  and  promoting  freedom 
of  trade  and  enterprise.  This  achievement  is  the 
more  notable  because  it  has  occurred  in  a  world 
which  for  over  two  decades  has  been  moving  in 

July  24,   1950 

895251—50 3 

the  direction  of  more  and  more  government  inter- 
vention in  economic  life.  If  we  can  achieve  the 
trade  freedom  for  which  the  Charter  provides  and 
maintain  that  degree  of  freedom,  the  accomplish- 
ment will  be  substantial. 

Maintaining  the  maximum  of  goods  in  world 
trade  with  a  minimum  of  restrictions  has  implica- 
tions beyond  the  immediate  effects  on  trade.  Free 
institutions  in  the  world  of  trade  have  their  influ- 
ence upon  the  maintenance  of  freedom  in  other 
situations.  The  effects  of  the  Charter  can  be  ex- 
pected to  contribute,  for  example,  to  the  healthy 
and  improving  economic  environment  which  sup- 
ports and  strengthens  the  kind  of  free  trade  union 
movement  which  we  have  found  to  be  essential  to 
the  survival  of  democratic  institutions. 

I  do  not  need  to  dwell  at  length  upon  the  obvious 
importance  of  healthy  and  unfettered  world  trade 
to  the  welfare  of  the  wage  and  salary  workers  of 
the  United  States.  As  our  industrial  system  has 
developed,  it  has  brought  with  it  increasing  inter- 
relationships between  our  production  and  distribu- 
tion mechanisms  and  the  trade  channels  of  the 
world.  In  1947,  for  example  (the  latest  year  for 
which  such  data  are  available),  almost  two  and 
one-half  million  jobs  in  American  nonagricul- 
tural  establishments  were  dependent  upon  export 
trade.  This  represented  5.6  percent  of  non- 
agricultural  employment  at  the  time;  in  some 
individual  industry  groups,  the  proportion  was  as 
high  as  15  percent.  Many  additional  jobs  in  the 
agricultural  sector  of  our  economy  are  also  de- 
pendent on  export  markets.  The  flow  of  raw  ma- 
terials into  this  country  is  an  essential  part  of  the 
fabric  of  the  production  process ;  imports  of  con- 
sumers' goods  into  our  markets  help  to  raise  our 
own  consumption  level.  Imports  into  this  coun- 
try contribute  to  the  support  and  maintenance  of 
the  export  markets  on  which  so  many  of  our  jobs 
at  home  depend. 

Restrictions  on  the  regular  flow  of  trade  in  es- 
tablished channels  can  have  serious  repercussions 
on  our  own  employment.  The  impact  of  a  single 
restrictive  action  can  be  illustrated  by  the  situa- 
tion in  the  United  States  textile  industry  during 
the  spring  and  sunnner  of  1948,  when  unreason- 
able licensing  requirements  of  one  of  our  Carib- 
bean neighbors  resulted  in  a  piling-up  in  ware- 
houses of  textile  yardage  equivalent  in  manhour 
requirements  to  roughly  a  full  month's  production 
of  more  than  40,000  textile  wage  earners.  On  a 
broader  scale,  the  continuation  of  unpredictable 
interruptions  to  trade  can  seriously  affect  the 
livelihood  of  important  groups  of  workers  in  our 

From  the  point  of  view  of  safeguarding  the 
welfare  of  workers  in  our  domestic  industry,  we 
must  also  be  certain  that  our  commitment  does 
not  lightly  remove  justifiable  protection  or  elimi- 
nate the  possibility  of  necessary  withdrawals  of 
tariff  or  other  concessions  in  the  event  that  se- 
rious injury  threatens  the  weaker  portions  of  our 


economy.  I  do  not  feel  that  we  have  given  up, 
in  tlie  Charter,  our  basic  ability  to  protect  Ameri- 
can jobs,  where  appropriate,  through  proper  tar- 
iff protection,  or  to  withdraw  concessions  which 
threaten  employment.  The  Charter  provides  the 
same  mechanisms  for  doing  this  which  is  speci- 
fied in  the  successfully-applied  procedures  of  our 
own  Trade  Agreements  Act  and  for  an  appi'o- 
priate  degree  of  international  consultation. 

The  welfare  of  the  wage  and  salary  worker  is 
related  to  world  trade  in  more  ways,  however, 
than  through  the  impact  of  specific  trade  restric- 
tions or  protective  devices.  High  levels  of  world 
trade  mean  high  consumption  levels.  The  wel- 
fare of  our  poj^ulation  at  home  can  best  be  sought 
by  achieving  a  level  of  world  trade  in  which  there 
is  a  continually  rising  volume  of  goods  to  be  ex- 
changed, based  upon  continually  rising  produc- 
tion and  purchasing  power  to  buy  the  goods  that 
are  produced. 

The  goal  of  a  higher  consumption  of  goods 
and  services  implies  something  more  than  the 
process  of  removing  barriers  to  trade.  It  also  im- 
plies taking  steps  to  establish  and  insure  the  con- 
tinued existence  of  a  healthy  economic  base  upon 
which  world  trade  can  develop.  Such  positive 
steps  must  be  taken  in  conjunction  with  efforts  to 
minimize  restrictions  on  existing  trade  channels. 
The  two  approaches  complement  each  other. 

Provisions  for  Employment 
and  Economic  Activity 

Positive  steps  to  expand  world  trade  are  pointed 
to  in  the  Charter's  chapter  on  employment  and 
economic  activity,  and  in  the  Chapter  on  Eco- 
nomic Development.  From  a  long-range  point  of 
view,  these  chapters  may  well  prove  to  be  as  im- 
portant to  the  full  development  of  world  trade, 
and  to  improved  consumption  levels  that  in- 
ci'eased  trade  brings,  as  are  many  of  the  remain- 
ing provisions  of  the  Charter.  I  want  to  discuss 
the  broad  purposes  of  the  provisions  of  these 

The  basic  obligation  assumed  in  the  Employ- 
ment Chapter  is  agreement  to  take  steps  to  main- 
tain full  and  productive  domestic  employment. 
The  basic  obligation  is  similar  to  that  provided  in 
articles  55  and  56  of  the  United  Nations  Charter. 
It  is  also  similar  to  that  provided  by  our  own 
Employment  Act  of  1946.  It  reserves  to  us  the 
choice  of  measures  to  achieve  full  and  productive 
domestic  employment.  As  an  obligation,  it  does 
not  go  beyond  the  obligation  we  have  already  as- 
sumed to  the  population  of  our  own  country. 

Why,  then,  it  might  be  asked,  is  it  necessary  to 
repeat  this  obligation,  already  self-imposed,  in 
an  international  document?  The  answer  is  to  be 
found  in  the  wides|)read  concern  of  the  nations 
of  the  world  over  the  possibility  of  large-scale 
unemployment,  over  the  possibility  that  they 
might  not  be  able  to  maintain  the  nondiscrimina- 
tory principles  of  the  Charter  in  the  face  of  major 

economic  difficulties.  Each  has  been  concerned  to 
have  a  positive  statement  of  the  other  nations' 
intent,  even  though  fully  aware  that  a  statement 
of  determined  intention  is  something  less  than  an 
ironclad  guaranty  of  successful  performance. 

It  is  especially  important  that  the  United 
States  join  in  expression  of  this  determination. 
Concern  over  the  possible  effects  of  serious  unem- 
ployment in  any  country  on  world  trade  and  on 
the  economies  of  all  countries  is  well-known.  Al- 
though our  own  external  trade  may  sometimes 
seem  small  to  us  in  relation  to  our  total  volume 
of  production,  it  is  a  fairly  large  proportion  of 
world  trade  in  terms  of  dollar  volume.  Most  im- 
portant, our  market  bulks  very  large  in  the  total 
market  of  some  individual  nations.  Disappear- 
ance of  this  market  through  a  drying-up  of  United 
States  purchasing  power  might  have  serious  effects 
on  their  economies.  Our  production  system  is  the 
envy  of  the  world,  and  we  need  lack  no  confidence 
in  our  ability  to  maintain  our  economic  system  on 
a  prosperous  basis.  Nevertheless,  it  must  be  rec- 
ognized that  fear  of  serious  unemployment  in  the 
United  States  has  been  an  important  factor  in 
negotiations,  in  conference  after  conference  to 
which  our  delegates  have  gone  during  the  postwar 
period,  including  those  which  have  been  in  prep- 
aration for  the  International  Trade  Organization. 

There  were  many  representatives  at  the  confer- 
ences leading  up  to  the  formulation  of  the  Havana 
charter  who  wanted  the  United  States  to  assume 
greater  obligations  to  control  its  economy  in  the 
interest  of  providing  a  more  certain  guaranty  of 
full  employment.  This  was  not  agreed  to  by  our 
delegates.  There  can  be  no  question  about  our 
continued  right  under  the  Charter's  Employment 
Chapter  to  seek  full  employment  with  the  mini- 
mum of  government  intervention  that  we  ourselves 
determine  to  be  wise. 

The  obligation  to  take  preventive  action  to  main- 
tain full  and  productive  employment  obviously 
must  have  its  counterpart  in  the  event  that  we 
cannot  maintain  full  employment,  despite  our  best 
efforts.  The  Charter  obligates  us  to  consult  with 
other  nations  on  action  to  be  taken  in  the  event  that 
another  economic  crisis  does  affect  world  trade. 
It  would  be  unrealistic  not  to  make  such  provision. 
If  we  should  have  economic  problems  ahead,  we 
will  want  to  handle  them  in  such  a  way  as  to  pre- 
serve the  cooperative  and  reciprocal  trade  rela- 
tionships that  we  ai'e  building  up  during  times  of 
prosperity.  We  want  the  machinery  we  are  build- 
ing to  weather,  and  not  to  flounder,  in  time  of 

Provisions  for  consultation  in  time  of  crisis  must 
be  drawn  with  extreme  care.  We  cannot  agi'ee  to 
advance  commitment  of  our  resources  or  arbitrary 
abridgment  of  the  rights  we  have  acquired  by 
negotiation  with  individual  nations  on  a  great 
many  trade  matters.  I  do  not  propose  in  this 
statement  to  elaborate  on  these  provisions.  It  is 
my  understanding  that  expert  and  detailed  testi- 
mony on  this  matter  will  be  offered  before  the 


Deparlment  of  State  Bulletin 

Committee.  The  basic  point  I  want  to  make  is  re- 
lated to  the  over-all  principle  of  consultation.  If 
we  get  into  economic  difficulties,  we  must  coop- 
erate, in  our  own  interest  and  in  the  interest  of 
world  economic  stability,  to  minimize  the  effects 
of  our  own  troubles  on  other  nations.  We  cannot 
escape  the  fact  that  our  own  economy  is  of  great 
importance  in  the  world  economy  or,  tlie  fact  that 
our  economic  difficulties  can  have  wide  repercus- 
sions. Moreover,  I  do  not  see  how  we  can  avoid 
becoming  the  subject  of  official  discussion  in  in- 
ternational forums  in  the  event  that  we  do  begin 
to  have  serious  unemployment.  Nor  do  I  see  how 
we  can  avoid  participation  in  cooperative  endeav- 
ors to  solve  serious  world-wide  problems.  What 
specific  results  this  consultation  will  lead  to  cannot 
be  foreseen,  as  we  cannot  foresee  the  precise  kinds 
of  economic  problems  with  which  we  shall  be  deal- 
ing. All  that  we  can  provide  for  at  this  time  is 
a  mechanism  and  certain  essentially  procedural 
rules  concerning  consultation.  We  cannot  agree, 
and  I  do  not  believe  that  we  would  be  agreeing  in 
the  charter,  to  go  bej'ond  the  stage  of  consultation 
and  of  cooperation  on  a  basis  to  which  we  agree 
in  dealing  with  the  most  difficult  problems  of  se- 
rious economic  maladjustment. 

The  undertaking  to  maintain  full  and  produc- 
tive employment  is  supplemented  in  the  Employ- 
ment Chapter  by  a  separate  undertaking  to  main- 
tain fair  labor  standards,  particularly  in  produc- 
tion for  export.  Since  the  problem  of  competition 
from  countries  with  lower  labor  standards  than 
our  own  has  been  a  perennial  problem  in  our  tariff 
history,  that  is  a  provision  we  should  welcome.  Its 
effectiveness  will  be  realized  at  an  extremely  slow 
rate,  of  course,  because  of  the  tremendous  difficul- 
ties involved  in  raising  labor  standards  in  coun- 
tries with  very  low  productivity.  The  method 
of  implementing  the  fair  labor  standards  obliga- 
tion will  remain  a  domestic  matter.  Close  rela- 
tionship will  obviously  have  to  be  maintained  with 
the  Intei'national  Labor  Organization,  which  has 
primary  responsibility  among  the  specialized 
agencies  in  the  labor  field.  The  charter  provides 
an  avenue  of  appeal  to  the  Ito  itself  if  it  can 
be  shown  that  a  country's  failure  to  maintain  fair 
labor  standards  has  the  effect  of  nullifying  or  im- 
pairing another  Member's  benefits  under  the 

ITO  and  Economic  Development 

The  Chapter  on  Employment  and  Economic  Ac- 
tivity emphasizes  chiefly  the  attainment  and  main- 
tenance of  employment.  The  chapter  on  economic 
development  looks  to  another  major  source  of 
the  future  expansion  of  world  trade,  through  the 
raising  of  productivity  levels  and  realizing  the 
potential  capacity  of  relatively  underdeveloped 
areas.  The  contribution  to  be  made  to  world  trade 
and  living  standards  here  is  the  kind  which  is  en- 
visaged in  the  principles  of  Point  4  of  President 
Truman's  inaugural  message. 

July  24,  1950 

The  Economic  Development  Chapter  envisages 
no  intervention  in  the  development  plans  of  any 
member  nation.  The  responsibility  for  develop- 
ment is  a  domestic  one  in  each  country,  and  devel-, 
opment  will  necessarily  take  different  forms  in 
each.  Development  in  some  countries  may  con- 
centrate on  industrialization,  in  others  on  exploi- 
tation of  mineral  resources  or  the  development  of 
sizable  projects  in  the  field  of  transport  or  power, 
and  in  others  on  the  achievement  of  higher  pro- 
ductivity in  agriculture.  Although  a  domestic 
responsibility,  development  will  necessarily  re- 
quire assistance  from  the  capital,  technical,  and 
industrial  resources  of  the  capital-exporting  coun- 
tries. Their  cooperation  on  a  voluntary  basis  is 
important  and  offers  advantages  to  them  as  well 
as  to  the  developing  countries.  The  role  of  the 
Ito  under  the  Charter  is  essentially  a  coordinat- 
ing role.  Members  in  need  of  technical  advice  or 
financial  assistance  may  come  to  the  organization 
for  aid.  The  organization  will  help  them  find 
such  assistance,  which  may  take  the  form  of  pri- 
vate technical  service  from  other  nations,  paid 
for  by  the  developing  country,  or  reference  to  the 
collaborative  aid  of  another  specialized  intergov- 
ernmental organization,  such  as  the  International 
Bank  for  Reconstruction  and  Development. 

It  is  entirely  likely  that  the  actual  role  of  the 
International  Trade  Organization  in  the  field  of 
positive  economic  development  will  be  limited. 
The  primary  sources  for  developmental  aid  will 
continue  to  be  private  investment  and  govern- 
mental aid.  Among  the  intergovernmental  agen- 
cies, the  role  of  the  World  Bank,  the  technical  aid 
supplied  by  such  specialized  agencies  as  the  Inter- 
national Labor  Organization,  and  work  done  un- 
der the  auspices  of  the  Economic  and  Social 
Council  should  prove  to  be  of  equal  or  greater 

The  Ito  has  a  necessary  role  in  the  development 
field  because  of  its  special  role  in  cases  where 
trade  barriers  are  used  to  protect  development. 
In  this  connection,  the  Ito  provides  a  mechanism 
through  which  restrictions  on  trade  during  the 
developmental  process,  especially  when  exercised 
through  quantitative  restrictions  rather  than 
tariff  rates,  can  be  held  to  a  reasonable  and  super- 
vised minimum.  This  necessary  concern  of  Ito 
members  with  problems  of  development  may  re- 
quire attention  to  various  phases  of  the  problem 
of  development,  including  helping  the  nation  in- 
volved to  find  technical  assistance  or  means  to  de- 
velopment other  than  trade  restrictions. 

One  of  the  most  difficult  problems  faced  in 
drafting  the  Charter  was  the  question  of  the  use 
of  restrictions  otherwise  prohibited  by  the 
charter  for  purposes  of  economic  development. 
At  times  during  the  negotiations,  the  provisions 
relating  to  the  use  of  trade  restrictions  for  "devel- 
opmental" purposes  threatened  to  offer  the  widest 
loopholes  for  escape  from  basic  commercial  policy 
rules.     The  deliberations  were  characterized  by 


disputes  between  the  industrialized  countries  and 
the  relatively  undeveloped  nations,  with  the  lat- 
ter contending  that  limitations  on  their  right 
to  use  restrictive  trade  practices  were  designed  to 
keep  them  from  industrializing.  This  miscon- 
ception was  corrected  ordy  by  agreement  of  the 
larger  industrial  nations  to  an  express  endorse- 
ment of  the  idea  of  development  and  by  a  com- 
mitment on  their  part  to  cooperate  in  such  devel- 
opment by  imposing  no  unreasonable  barriers  to 
the  international  movement  of  capital  and  skills 
for  developmental  purposes.  The  more  difficult 
problems  of  the  use  of  trade  barriers  and  re- 
gional preferences  for  development  purposes  were 
worked  out  through  a  series  of  elaborate  and  tech- 
nical articles,  which  will  be  best  reviewed  by  the 
Committee  during  the  course  of  the  expert  testi- 
mony before  it. 

The  Charter  is  the  product  of  negotiations 
among  many  people  from  many  nations,  each 
bringing  his  own  experience  and  the  reflection  of 
his  own  political,  economic,  and  social  institu- 
tions. This  is  an  element  of  strength  in  the 
charter.  The  basic  provisions  of  the  employment 
chapter,  for  example,  were  embodied  in  the  origi- 
nal United  States  proposals  which  led  to  the  Char- 
ter. Both  the  employment  and  the  economic  de- 
velopment provisions  embody  principles  which  are 
an  accepted  part  of  our  own  national  and  foreign 
economic  policy.  They  embody  the  positive  steps 
which  we  must  consider  seriously  in  our  own  self 
interest  and  as  part  of  our  participation  in  world 

I  respectfully  urge  that  your  Committee  rec- 
ommend unqualified  acceptance  of  the  Charter  for 
an  International  Trade  Organization. 

Clarification  Asitedon  Senate  Coffee  Report 

Statement  by  Edward  G.  Miller 

Assistant  Secretary  for  Inter-American  Affairs ''^ 

I  greatly  appreciate  your  courtesy  in  giving  the 
Department  of  State  this  hearing.  I  assure  you 
of  the  desire  of  the  Department  to  work  coopera- 
tively with  your  Committee  and  with  all  of  the 
other  committees  of  Congress  that  consider  sub- 
jects relating  to  United  States  foreign  policy.  I 
hope  that  you  individually  and  collectively  will 
take  advantage  of  our  desire  to  be  of  assistance 
whenever  you  want  our  help. 

Especially  in  view  of  the  strong  protests  which 
have  been  made  to  the  Department  by  the  coffee- 
producing  countries  regarding  your  subcommit- 
tee's report  on  coffee,  I  believe  that  it  is  important 
from  the  standpoint  of  our  foreign  relations  that 
the  Committee  be  informed  of  the  attitude  of  these 
countries  toward  the  report  and  the  interpreta- 
tion which  they  are  placing  upon  its  recommenda- 
tions. I  know  that  this  Committee  and  the  mem- 
bers of  the  subcommittee  are  as  anxious  as  the 
State  Department  to  correct  any  misunderstand- 
ings or  misapprehension  regarding  the  intent  of 
the  report. 

Officials  of  the  Department  have  previously  ap- 
peared before  the  subcommittee  which  prepared 
the  report  to  answer  questions  and  to  provide  data. 
The  Department  has  endeavored  to  give  the  sub- 
committee all  assistance  possible  in  obtaining  such 
material  as  it  required  from  Embassy  sources. 
The  Department  did  not,  however,  see  the  report 

'  Made  before  the  Senate  Committee  on  Agriculture  and 
Forestry  on  June  20  and  released  to  the  press  on  the  same 

itself  before  it  was  made  public,  and  was,  there- 
fore, not  able  to  comment  in  advance  on  those  sec- 
tions which  it  might  have  recognized  as  poten- 
tially troublesome.  I  doubt  that  even  we  in  the 
Department  could  have  foreseen  the  full  measure 
of  resentment  which  the  report  has  aroused.  That 
it  is  resented  deeply,  not  only  by  the  governments 
of  the  countries  which  have  lodged  protests  with 
the  Department  but  by  their  citizens,  is  becoming 
increasingly  apparent.  Our  Embassies  in  the 
principal  coffee-producing  countries  report  that 
even  those  newspapers  which  are  customarily 
friends  of  the  United  States  have  been  sharply 
critical  of  the  United  States  on  this  issue  and  that 
many  of  the  attacks  have  been  extremely  bitter. 

It  is  always  to  this  Government's  interest  to 
maintain  relations  with  neighboring  countries  on 
as  friendly  a  basis  as  possible.  The  opening  par- 
agraphs of  the  subcommittee's  report  express  what 
I  am  sure  is  a  sincere  concern  for  the  welfare  of 
the  Latin  American  people.  Recognizing,  then, 
the  fund  of  good  will  which  exists,  I  am  hopeful 
that  the  Committee  will  be  able  to  develop  its 
final  position  on  the  coffee  report  in  a  form  which 
will  both  make  possible  the  attainment  of  the  de- 
sirable objectives,  upon  which  I  am  sure  we  can 
all  agree,  and  demonstrate  a  full  understanding 
of  the  position  of  the  coffee-producing  countries. 
Our  record  for  cooperation  within  the  hemisphere 
on  matters  relating  to  coffee  is  one  of  long  stand- 
ing. It  has  been  of  mutual  benefit;  and  I  hope 
that  it  can  be  maintained. 


Department  of  State  Bulletin 

The  State  Department  is  not  here  to  plead  a 
case  for  high  coffee  prices.  The  Department  takes 
no  position  regarding  the  fairness  or  unfairness 
of  any  given  level  of  coffee  prices.  It  assumes 
that  under  a  system  of  free  private  enterprise, 
such  as  we  encourage  in  the  United  States,  prices 
will  adjust  automatically  to  reflect  a  fair  balance 
between  the  conflicting  interests  of  producer  and 
consumer,  always  assuming,  of  course,  that  the 
market  is  broad  enough  to  assure  competition  of 
sellers  and  buyers.  Coffee  prices  may  seem  ex- 
tremely high  to  us  at  the  present  time.  During 
the  period  of  the  thirties,  they  seemed  to  the 
coffee-producing  countries  to  be  unduly  low,  and 
I  am  sure  that  this  Committee  will  understand 
me  when  I  say  that,  I  believe,  the  1930's  would  not 
be  a  fair  base  period  to  select  for  coffee. 

I  realize  that  the  price  of  coffee  is  an  important 
consideration  for  the  American  consumer,  and  I 
can  appreciate  his  confusion  at  seeing  the  price 
double  within  a  few  months.  I  fully  understand 
his  desire  to  have  this  sudden  price  rise  investi- 
gated, and  I  believe  that  the  subcommittee  should 
Be  commended  for  its  efforts  to  uncover  any  market 
manipulation  which  contributed  to  the  increase 
in  prices.  The  Department  is  not  trying  in  any 
way  to  shield  any  individual  or  group  of  in- 
dividuals— in  the  United  States  or  abroad — who 
may  have  taken  unfair  advantage  of  the  tight 
situation  which  developed  in  the  coffee  market 
last  fall.  Furthermore,  it  recognizes  that  with 
the  virtual  disappearance  of  the  Brazilian  Gov- 
ernment-owned stocks,  which  had  served  as  a  buf- 
fer for  so  many  years,  the  possibilities  of  manipu- 
lation were  appreciably  increased. 

Propriety  of  Statements  Questioned 

On  the  other  hand,  the  Department  believes 
strongly  that  no  accusations  of  manipulation  of 
markets,  or  collusion  between  producing  interests, 
should  be  made  unless  and  until  there  is  clear 
evidence  to  substantiate  such  charges.  With  re- 
spect to  such  matters,  the  Department  must  rely 
largely  on  other  agencies  of  the  Government  and 
on  the  findings  of  Congressional  committees  of 
investigation.  Apparently,  the  subcommittee 
itself  has  had  some  difficulty  in  developing  infor- 
mation of  this  character.  I  am  informed  that  no- 
where in  the  report  or  in  the  record  of  the  hearings 
is  conclusive  evidence  presented  to  show  that  there 
actually  was  collaboration  on  the  part  of  the  pro- 
ducing countries  to  withhold  coffee  from  this 
market  in  order  to  bring  about  a  rise  in  price. 
Accordingly,  I  question  the  propriety  of  the  state- 
ment on  page  16  of  the  report  that  "it  is  likely" 
that  the  decision  of  the  National  Coffee  Depart- 
ment of  Brazil  to  close  out  its  coffee  stocks  in  1948 
was  "the  prelude  of  a  well-laid  campaign  by  Bra- 
zil and  Colombia  to  raise  coffee  prices."  The  Na- 
tional Coffee  Department  of  Brazil  has  been  en- 
deavoring to  liquidate  its  surplus  coffee  stocks 

over  a  long  period  of  years,  and  it  was  logical  to 
suppose  that  it  would  eventually  succeed. 

Another  section  of  the  report  refers  to  the  fact 
that  the  National  Federation  of  Coffee  Growers 
of  Colombia  is  currently  holding  considerable 
stocks  of  coffee  and  that  both  Colombia  and  Bra- 
zil undertake,  from  time  to  time,  to  support  coffee 
prices  either  by  maintaining  a  fixed  buying  price 
or  by  assisting  in  the  financmg  of  the  crop.  This, 
surely,  cannot  be  regarded  as  evidence  of  price 
rigging.  Maintenance  of  pi-ice  supports  for  agri- 
cultural commodities  is  an  accepted  practice  of 
many  governments,  including  our  own.  As  surely 
as  the  withholding  of  stocks  leads  to  a  temporary 
price  increase,  their  future  liquidation  will  lead  to 
a  decrease  in  prices,  and  each  goverimient  must 
make  its  own  decision  as  to  what  rate  of  disposal 
is  in  the  best  interests  of  its  producers.  Unless 
there  is  collaboration  among  suppliers  to  misrep- 
resent the  facts,  and  thus  to  mislead  consuming 
interests,  these  price-support  programs  cannot 
properly  be  regarded  as  market  manipulation. 

If,  on  the  other  hand,  what  the  subcommittee 
had  in  mind  was  manipulation  by  individual 
speculators,  and  if  there  is  evidence  of  such  opera- 
tions, certainly  the  situation  should  be  investi- 
gated by  the  Department  of  Justice,  and  any  in- 
fringement of  our  antitrust  laws  should  be 
IDunished.  The  State  Department,  of  course,  fully 
subscribes  to  the  thesis  that  the  Attorney  General 
should  be  vigilant  in  protecting  the  consumer 
against  any  infraction  of  our  laws,  whether  by 
foreign  or  by  domestic  speculators.  Recommen- 
dation 7  seems  to  me,  however,  in  the  circum- 
stances, to  prejudge  the  case.  It  requests  the 
Attorney  General  to  bring  civil  suit  under  the 
antitrust  laws  to  compel  disposition  of  the  coffee 
stocks  which  the  National  Federation  of  Coffee 
Growers  of  Colombia  holds  in  the  United  States. 
On  the  basis  of  the  evidence  presented  in  the  re- 
port, I  believe  that  it  should  have  simply  proposed 
that  the  Attorney  General  make  an  investigation 
to  determine  whether  there  might  be  basis  for 
charges  under  our  antitrust  laws. 

The  Department's  principal  interest  in  the  re- 
port, however,  relates  to  some  of  the  other  recom- 
mendations. Surprisingly,  little  or  no  informa- 
tion is  supplied  in  the  report  by  way  of  background 
on  such  recommendations.  This,  together  with 
the  fact  that  they  appear  to  the  Governments  and 
the  people  of  the  Latin  American  countries  to  be 
either  a  reflection  upon  the  Governments  or  an 
attack  upon  their  economies,  accounts  very  largely, 
I  believe,  for  the  reaction  which  the  report  has 
aroused.  I  shall  take  these  recommendations  in 
order  beginning  at  recommendation  9  and  ask  that 
you  examine  them  with  me  from  the  viewpoint  of 
our  Latin  American  friends. 

Recommendations  Arousing  Protests 

Recommendation  9  is  that  at  all  future  meetings 
of  the  Special  Commission  on  Coffee  of  the  Inter- 
American  Economic  and  Social  Council,  a  repre- 

Ju/y  24,   1950 


sentative  of  the  Department  of  Justice,  detailed 
for  that  purpose  by  the  Attorney  General,  be  pres- 
ent. Very  little  information  is  given  in  the  body 
of  the  report  regarding  the  activities  of  the  Coffee 
Commission.  There  is  one  statement  to  the  effect 
that  most  of  the  representatives  on  the  Coffee 
Commission  also  represent  their  countries  on  the 
Pan  American  Coffee  Bureau,  which  is  a  sales  pro- 
motion organization,  and  which  has  been  accused 
of  endeavoring  to  influence  the  trend  of  coffee 
prices.  The  implication  which  is  immediately 
drawn  from  the  subcommittee's  recommendation 
by  the  foreign  representatives  on  the  Commission 
is:  first,  that  they  are  suspected  of  being  unable 
to  divorce  their  trade  interests  from  their  official 
duties,  and  second,  that  surveillance  is  required  to 
prevent  them  from  using  the  Commission  as  a 
front  for  other  activities,  which  might  be  detri- 
mental to  the  United  States  consumer.  This  is  a 
case  where  misunderstanding  can  be  harmful. 

In  order  to  save  your  time,  I  should  like,  at  this 
point,  to  incorporate  by  reference  the  testimony  of 
the  Department's  representative  before  the  sub- 
committee regarding  the  importance  of  coffee  to 
Latin  America  and  the  origin,  purpose,  and  sig- 
nificance to  Latin  American  producers  and  to 
United  States  consumers  of  the  inter-American 
coffee  agreement.  For  the  coffee  producers,  it 
meant  material  assistance  during  one  of  their 
darkest  hours.  For  our  consumers,  it  has  meant 
that  supplies  are  now  undoubtedly  more  adequate, 
because  it  helped  check  a  very  substantial  decline 
in  coffee  production.  The  testimony  in  question 
begins  on  page  818  of  part  2  of  the  hearings.  From 
that  testimony,  it  will  be  noted  that  this  agreement 
was  a  treaty  which  was  approved  by  the  Senate, 
and  the  protocols  extending  it  were  presented  to 
the  Senate  for  their  advice  and  consent. 

From  that  testimony,  it  will  also  be  noted  that 
it  was  apparent  by  1945  that  conditions  in  the 
world  coffee  industry  had  changed  significantly. 
Brazil's  production,  which  had  accounted  for  the 
major  part  of  the  world's  exports,  had  declined 
greatly.  Consumption  in  the  United  States  had 
increased  substantially  during  the  war  years,  and 
European  markets  were  again  becoming  accessible. 

This  change  with  respect  to  the  world  coffee  sit- 
uation was  referred  to  in  the  report  of  the  Senate 
Foreign  Relations  Committee  submitted  by  Sen- 
ator Lodge  on  February  19,  1947.  The  report 
pointed  out  that  because  of  the  changed  situation 
the  United  States  had  suggested  that  the  quota 
provisions  of  the  agreement  be  rendered  inopera- 
tive. The  same  report  also  indicated  that  the 
United  States  view  regarding  the  quotas  had  pre- 
vailed notwithstanding  some  reluctance  by  other 
signatory  governments. 

From  the  time  the  quota  provisions  were 
dropped  on  October  1, 194.5,  the  Coffee  Agreement 
ceased  to  be  a  factor  in  the  world  coffee-price  sit- 
uation. The  coffee-producing  countries  wished, 
nevertheless,  to  see  the  agreement  extended — not 
because  it  could  be  of  any  further  assistance  to 

them  pricewise,  but  because  of  what  it  had  meant, 
and  because  it  would  be  an  indication  of  our  con- 
tinuing interest  in  their  coffee  problems. 

It  was  later  decided,  again  upon  the  initiative 
of  the  United  States,  to  allow  the  agreement  to 
terminate  altogether.  In  the  report  of  the  For- 
eign Relations  Committee  on  April  20,  1948,  rec- 
ommending approval  of  the  final  protocol,  which 
extended  the  agreement  until  September  30,  1948, 
the  Committee  pointed  out  that  the  protocol  pro- 
vided that  the  Coffee  Board  "should  undertake 
to  make  arrangements  to  transfer  its  functions, 
assets,  and  records  to  an  appropriate  inter-Amer- 
ican or  other  international  organization"  by  Sep- 
tember 30,  1948,  and  said  "The  Foreign  Relations 
Committee  which  has  repeatedly  urged  the  more 
effective  coordination  of  existing  international  or- 
ganizations, believe  that  the  program  contem- 
plated for  tlae  Coffee  Board  would  be  a  step  in  the 
right  direction." 

In  pursuance  of  this  provision  of  the  protocol, 
the  United  States  join  with  the  other  members  in 
petitioning  the  Organization  of  American  States 
to  assume  responsibility  for  certain  aspects  of  the 
work  carried  out  by  the  Coffee  Board  under  the 
agreement.  The  Inter-American  Economic  and 
Social  Council  agreed  that  "in  order  to  provide 
facilities  necessary  for  keeping  the  world  coffee 
situation  under  continuous  review  and  for  collect- 
ing, analyzing  and  disseminating  information 
bearing  on  long-range  coffee  developments,"  it 
would  create  a  Special  Commission  on  Coffee. 


The  Coffee  Commission  is  merely  a  consultative 
body.  Any  recommendations  it  makes  must  be 
passed  upon  by  the  Economic  and  Social  Council 
of  the  Organization  of  American  States.  It  has 
no  staft'  and  no  separate  budget.  Its  principal 
activities  are  to  improve  coffee  statistics  and  to 
cooperate  with  the  Institute  of  Agricultural  Sci- 
ences in  Turrialba,  Costa  Rica,  on  projects  for  the 
improvement  of  coffee  production  and  handling. 
It  is,  nevertheless,  a  symbol  of  cooperation  be- 
tween the  governments  of  the  American  Republics. 
The  coffee-producing  countries  believe,  very 
strongly,  that,  during  the  period  of  the  operation 
of  the  agreement,  coffee  consumers  in  the  United 
States,  especially  because  of  the  relatively  low 
prices  during  the  period  of  price  control,  have  been 
the  principal  beneficiaries  of  this  cooiDeration. 

The  Coffee  Commission  now  meets  about  once 
a  month  and  prior  to  the  coffee  investigation,  so 
far  as  the  Department  is  aware,  no  question  had 
even  arisen  regarding  the  desirability  of  holding 
open  meetings,  because  no  one  had  evidenced  any 
interest  in  attending.  Statistics  on  coffee  have 
appeal  for  a  very  small  group,  and  the  general 
interest  in  technical  assistance  has  been  focused  on 
a  whole  program,  rather  than  on  the  $27,000 
project  for  the  year  ending  June  30,  1950,  that  is 
being  carried  out  on  coffee  at  Turrialba. 


Departmenf  of  Stafe  Bulletin 

I  hope  that  with  tliis  background  you  may  be 
able  to  appreciate  why  the  recominendatioa  that 
a  repi"esentative  of  the  Depai'tnient  of  Justice  at- 
tend the  meetings  of  tlie  Coffee  Commission  has 
been  interpreted  by  the  members  of  the  Commis- 
sion as  an  afl'ront  both  to  themselves  and  to  their 
govermnents.  The  Commission  believes,  and 
made  evident  at  the  special  meeting  which 
it  called  last  Friday  afternoon  to  consider  the 
coffee  report,  that  it  has  been  placed  in  an  un- 
favorable light ;  that  the  affront  was  not  deserved ; 
and  that  it  has  no  adequate  means  of  protecting 
itself.  However,  among  other  actions  taken  at 
the  meeting  of  the  Commission  on  Friday  was  a 
decision,  by  unanimous  vote,  that  the  Commis- 
sion's meetings  would  customarily  be  open  to  any- 
one who  might  wish  to  attend.  The  Department 
believes  that  this  decision  was  a  wise  one  in  that 
it  should  help  protect  the  Commission  against  un- 
warranted criticism  in  the  future,  and  it  may  lead 
to  a  somewhat  better  understanding  of  the  Com- 
mission's activities  both  on  the  part  of  the  public 
and  the  press.  I  must,  therefore,  in  all  respect, 
say  that  in  my  opinion  this  recommendation  was 


With  respect  to  recommendation  10,  that  the 
Bureau  of  the  Census  undertake  to  make  regular 
quarterly  reports  of  the  stocks  of  green  and  roasted 
coffee  on  hand,  I  should  like  to  mention  that  the 
Coffee  Commission  some  months  ago  requested  the 
United  States  representative  to  take  this  matter 
up  with  the  Bureau  of  the  Census  and  to  see 
whether  data  on  stocks  could  not  be  collected  reg- 
ularly. It  was  disappointed  to  learn  that  this 
was  not  possible  at  that  time,  largely  because  funds 
for  this  purpose  were  not  available.  If,  as  a  re- 
sult of  your  interest  in  the  matter,  this  difficulty 
can  be  overcome,  a  real  improvement  in  our  own 
statistics  on  coffee  could  be  realized.  This  might 
serve  as  a  useful  example  to  other  countries  in- 
terested in  international  trade  in  coffee. 

Recommendation  11  is  one  to  which  the  other 
American  Republics  have  taken  strong  exception 
and  which  the  State  Department  would  not  be 
able  to  support.  It  suggests  "that  the  United 
States,  through  diplomatic  channels,  offer  to  assist 
the  Brazilian  and  Colombian  Governments  in  such 
a  way  as  may  seem  feasible  to  aid  these  countries 
in  acljusting  their  official  exchange  rates  of  the 
cruzeiro  and  the  peso  to  the  certificate-of-exchange 
or  realistic  value  of  these  jnoneys."  Brazil  and 
Colombia  are  both  members  of  the  International 
Monetary  Fund,  as  is  also  the  United  States.  The 
Fund  is  the  international  authority  on  questions 
of  exchange,  and  the  subject  is  a  highly  technical 
one.  Any  request  for  an  adjustment  of  exchange 
rates  must,  under  the  Fund's  regulations,  originate 
with  the  country  desiring  the  change  and  come 
before  the  directors  of  the  Fund  for  consideration. 
The  United  States  Director  on  the  Fund  has  an 

opportunity,  at  that  time,  to  make  known  the 
views  of  this  Government,  and  any  action  by  this 
Government  through  channels  other  than  the 
Fund  would  be  considered  inappropriate. 

Recommendation  12  of  the  report  urges  the  cof- 
fee-producing countries  "to  establish  full  reliable 
statistical  organizations  within  their  governments 
that  will  provide  accurate  statistics  on  stocks  of 
coffee  both  in  warehouses  and  interior,  proper  crop 
estimates,  tree  census,  acreage,  etc." 

This  is  another  instance  where  I  believe  that 
the  wording  of  the  recommendation  could  be  im- 
proved. I  believe  that  no  one  is  more  aware  of 
the  need  for  improvement  of  coffee  statistics  than 
the  producing  countries  themselves.  Through 
their  representatives  on  the  Special  Commission 
on  Coffee,  they  have  recently  devoted  much  time 
and  thought  to  the  preparation  of  a  questionnaire 
which  has  now  been  sent  to  the  government  of 
each  coffee-producing  country  in  an  effort  to  ob- 
tain data  which  will  be  accurate,  comparable,  and 
up  to  date.  The  Commission  has  also  worked 
with  the  United  Nations  Food  and  Agriculture 
Organization  to  try  to  insure  that  the  1950  census 
of  agriculture  which  is  now  being  taken  in  many 
of  the  countries  of  the  hemisphere  will  increase 
the  statistical  information  on  coffee.  But  you  will 
note  that  the  subcommittee's  recommendation  re- 
fers not  to  reliable  statistics  but  to  "reliable  statis- 
tical organizations."  This  has  been  interpreted 
by  the  coffee-producing  countries  as  a  reflection 
not  on  their  statistics — which  they  will  readily 
admit  are  not  as  comprehensive  as  they  would  like 
to  have  them — but  on  their  public  officials.  I'm 
sure  that  no  such  interpretation  was  intended  and 
that  a  slight  revision  of  wording  would  have  elim- 
inated the  misunderstanding. 


Recommendations  13  and  14  can  best  be  consid- 
ered together.  One  recommends  that  the  United 
States  offer  technical  assistance  to  friendly  nations 
other  than  those  in  the  Western  Hemisphere  in 
expanding  their  coffee  production.  The  other  ad- 
vises careful  scrutiny  of  any  loans  made  by  this 
Government  to  the  Central  and  South  American 
countries  in  view  of  the  fact  that  their  economies 
are  largely  dependent  on  coffee  and  that  any  per- 
manent decline  in  consumption  comparable  to  that 
which  occurred  in  the  first  4  months  of  this  year 
will,  ultimately,  result  in  "a  crash  in  coffee  prices." 
These  two  recommendations,  presented  in  conjunc- 
tion seem  to  be  an  anomaly.  If  the  price  of  coffee 
should  fall  to  a  level  which  might  endanger  the 
financial  structure  of  the  countries  now  producing 
coffee,  it  would  not  appear  to  be  a  promising  field 
for  development  in  other  countries  under  the  tech- 
nical assistance  program. 

Actually,  I  doubt  that  the  first  4  months  of  this 
year  afford  a  reliable  guide  to  future  consimiption 
trends.  That  was  the  period  immediately  follow- 
ing the  rapid  price  increase,  and  the  hoarding 

July  24,   1950 


which  we  know  occurred  during  the  last  quarter 
of  1949  probably  finds  its  parallel  in  the  dis- 
hoarding  which  took  place  during  the  first  quarter 
of  1950.  I  understand  that  there  is  a  wide  differ- 
ence of  opinion  among  men  who  know  the  coffee 
trade  best  as  to  what  effect  the  price  increase  is 
likely  to  have  on  consumption  in  the  long  run. 
In  view  of  this  fact,  it  seems  to  me  that  the  need 
for  recommending  special  precautions  with  re- 
spect to  loans  made  to  coffee-producing  countries 
has  not  been  established.  All  loans  made  by  the 
Government  will  continue  to  be  carefully  scruti- 
nized as  to  their  economic  and  financial  sound- 
ness, and  a  determination  as  to  repayment  ability, 
based  upon  the  long-term  internal  and  external 
financial  outlook,  is  always  a  fundamental 

With  reference  to  the  recommendation  that  the 
United  States  encourage  the  production  of  coffee  in 
countries  outside  the  hemisphere,  there  would  ap- 
pear to  be  no  reason  for  placing  a  geographical 
restriction  on  whatever  aid  may  be  offered  through 
the  technical  assistance  program.  If  the  outlook 
is  for  a  continuance  of  short  supplies,  we  would, 
logically,  welcome  increased  production  in  any 
country,  including  those  to  the  south,  which  have 
customarily  supplied  more  than  95  percent  of  our 
coffee  imports  and  cooperated  fully  both  with  this 
Government  and  with  the  domestic  coffee  trade  in 
endeavoring  to  meet  our  requirements.  If  the  as- 
sumption on  which  the  recommendation  was  based 
was  that  no  assistance  would  be  required  to  en- 
courage production  in  areas  which  are  already  ac- 
quainted with  coffee  culture,  I  believe  that  the 
assumption  was  in  error.  Actually,  improved  cul- 
tural practices  could  be  introduced,  advanta- 
geously, in  many  countries  which  are  now  large 
producers,  and  support  and  encouragement  of  ex- 
perimental work  on  coffee  in  institutions  such  as 
the  Inter-American  Institute  of  Agriculture  in 
Turrialba  is  urgently  needed. 

Kecommendation  15  is  that  the  Economic  Co- 
operation Administration  refuse  to  authorize  any 
further  allocation  of  dollars  for  the  purchase  of 
coffee.  The  coffee-producing  countries  might  well 
ask  why  their  principal  procluct  should  be  singled 
out  for  special  restrictions.  Is  it  punishment  for 
allowing  prices  to  rise  or  is  it  to  be  interpreted 
merely  as  an  effort  on  the  part  of  the  United  States 
to  obtain  the  lion's  share  of  a  limited  supply? 
Whatever  the  explanation,  it  is  fresh  salt  in  an  old 
wound.  As  you  probably  know,  the  EGA  pro- 
gram is  regarded  by  many  of  these  countries  as 
an  obstacle  to  their  own  industrial  development. 
They  have  pointed  out  that  this  program  for  Euro- 
pean reconstruction  operates  to  their  disadvan- 
tage in  at  least  two  ways.  First,  they  fear  that 
through  possible  future  development  of  colonial 
possession,  active  competition  for  their  products 
may  be  built  up.  Second,  because  of  the  strain 
which  it  placed,  especially  in  the  early  years,  on 
our  industrial  plant,  they  claim  that  the  Marshall 
Plan  delayed  them  in  obtaining  new  equipment 

and  replacement  parts  which  were  needed  to  face 
the  new  competition.  They  asked,  at  one  time, 
for  a  Marshall  Plan  for  South  America,  pointing 
out  that  they  were  relatively  undeveloped  and  that 
capital  was  urgently  needed.  They  could  point 
to  an  excellent  record  of  cooperation  with  this 
Government  throughout  the  war  in  supplying 
products  which  we  then  urgently  needed.  Our 
answer  included  the  assurance  that  they  would 
benefit,  at  second  hand,  from  the  demand  for  their 
products  which  would  develop  in  Europe  as  a 
result  of  the  flow  of  EGA  dollars  to  the  European 

Actually,  they  have  benefited  much  less  from 
the  program  than  might  have  been  expected.  The 
surplus  disposal  provisions  of  the  EGA  Act 
limited  procurement  of  agricultural  products  to 
the  United  States  if  surplus  stocks  were  available, 
even  when  prices  here  were  substantially  higher 
than  elsewhei'e.  So  far  as  competing  commodities 
were  concerned,  therefore,  Latin  American  coun- 
tries were  out  of  the  market.  They  still  might 
benefit,  however,  from  the  purchase  of  petroleum, 
coffee,  sugar,  and  other  tropical  products,  but  it 
would  be  difficult  to  establish  the  fact  that  their 
export  of  coffee  to  Europe  is  larger  because  of  the 
EGA  program.  A  relatively  small  amount  of 
coffee  has  actually  been  financed  by  EGA,  and  most 
of  this  has  been  of  inferior  grades  that  are  not 
used  in  appreciable  quantities  in  the  United  States. 
In  view  of  all  the  circumstances,  it  is  understand- 
able, I  think,  that  they  should  regard  the  recom- 
mendation regarding  EGA  procurement  of  coffee 
as  added  evidence  that  the  subcommittee  is  not 
sympathetic  to  their  problems. 

View  on  Proposed  Legislation 

I  do  not  wish  to  comment  in  detail  on  the  other 
recommendations  of  the  report  because  they  are, 
in  general  not  so  directly  related  to  the  foreign 
policy  of  the  United  States  as  are  those  that  I  have 
already  discussed  with  you,  and  since  the  Com- 
mittee will  presumably  receive  comments  from 
the  agencies  of  the  Government  which  are  most 
closely  concerned.  However,  since  two  of  the 
recommendations  deal  with  the  only  legislative 
action  proposed  in  the  report,  I  should  like  to 
indicate  the  present  thinking  of  the  Department 
with  respect  to  them. 

The  Department  would  have  no  objection,  in 
principle,  to  the  bill  proposed  in  recommendation 
4  which  would  place  trading  in  coffee  under  the 
Commodity  Exchange  Act.  The  Department  is 
at  present  aware  of  no  reason  why.  from  the  for- 
eign policy  viewpoint,  coffee  should  not  be  subject 
to  the  same  legislation  in  respect  of  trading  on 
the  commodity  exchanges  that  applies  to  a  large 
number  of  staple  commodities  that  are  primarily 
of  domestic  origin.  In  fact,  unless  there  are  prac- 
tical reasons  why  this  should  not  be  done,  the  re- 
duction that  has  gradually  occurred  over  a  period 
(Continned  on  page  157) 


Department  of  State  Bulletin 


The  World  Cotton  Situation 



The  International  Cotton  Advisory  Commit- 
tee convened  its  ninth  plenary  meeting  on  May  22 
at  AVashington  to  strive  for  further  progress 
toward  its  three  major,  continuing  objectives 
which  are : 

1.  To  furnish  information  regarding  the  current 
economic  position  of  cotton  in  the  world. 

2.  To  serve  as  a  forum  for  the  exchange  of  views 
and  ideas  designed  to  facilitate  solution  of  prob- 
lems affecting  the  world's  cotton  industry. 

3.  To  formulate  suggestions  for  international 
economic  study  in  dealing  with  world  cotton 

Summary  of  Action 

The  Committee  took  no  action  on  negotiating 
an  international  cotton  agreement  but  recom- 
mended that  the  Standing  Committee  continue  to 
keep  the  world  cotton  situation  under  continuous 
review  and  "make  such  recommendations  to  mem- 
ber governments  as  it  deems  appropriate  and  com- 
patible with  their  international  obligations." 

The  Committee,  although  recognizing  that  bal- 
ance-of-payments  difficulties  constitute  a  world- 
wide problem  whose  solution  is  outside  its  scope, 
agreed  that  the  world  for  years  to  come  will  be 
highly  dependent  upon  raw  cotton  exports  from 
the  United  States.  It  took  note  of  the  fact  that 
those  exports,  at  present,  are  made  possible  largely 
through  exceptional  financing  methods.  In  this 
connection,  the  Committee  asked  its  Standing 
Committee,  with  the  assistance  of  the  Secretariat, 
to  follow  developments  in  the  balance-of-pay- 
ments  situation  as  it  affects  cotton  and  to  report 
on  the  matter  at  the  tenth  plenary  meeting. 

With  reference  to  increasing  world  cotton  con- 
sumption, the  Committee  invited  all  member  gov- 

ernments to  help  raise  clothing  standards  in  their 
countries  through  a  study  of  national  clothing 
habits  and  by  assisting  manufacturers  in  carrying 
out  necessary  sales  promotion  programs  and  by 
further  research  and  development  of  cotton  pro- 
duction and  processing  methods. 

The  Committee,  reaffirming  a  resolution  at  its 
eighth  plenary  meeting,  recommended  again  to 
member  governments  that  where  satisfactory  steps 
have  not  already  been  taken  for  the  purpose,  they 
establish  a  national  coordinating  agency  or  desig- 
nate an  existing  office  to  supply  the  Secretariat 
with  needed  statistical  and  other  information. 
It  recommended,  furthermore,  that  such  coordi- 
nating agency  of  office  serve  also  to  distribute  to 
all  appropriate  agencies  and  offices  of  the  respec- 
tive governments  information  and  material  re- 
ceived from  the  Secretariat  and  generally  keep  in 
close  touch  with  the  Secretariat. 

The  Committee  commended  the  Secretariat  for 
its  report  and  published  periodicals.  One  of  the 
studies  prepared  by  the  Secretariat  was  the  An- 
nual Review  of  the  World  Cotton  Situation.  This 
document  contains  an  analysis  and  summary  of 
developments  during  the  current  season  and  pros- 
pects for  the  future  in  the  various  sectors  of  the 
world  economy — production,  consumption,  stocks, 
trade,  and  prices. 


Representation  at  the  ninth  plenary  meeting  was 
the  largest  since  the  organization  of  the  Com- 
mittee 11  years  ago.  Edwin  D.  White  (United 
States)  was  elected  chairman  of  the  Standing 
Committee  which  meets  regularly  during  the  year 
at  the  permanent  Secretariat  at  Washington  to 
keep  the  world  cotton  situation  continuously  under 
review  and  promote  the  flow  of  information  be- 
tween the  Committee's  member  governments. 

Jw/y  24,   ?950 


The  Governments  of  the  following  States  were 
represented  at  the  Meeting  by  delegates : 


















United  Kingdom 

United  States 

The  Governments  of  the  following  States  were 
represented  by  observers : 






Dominican  Republic 




Federal  Republic  of 






Supreme  Command 

Allied  Powers 

Union  of  South  Africa 

The  following  International  Organizations  were 
represented  by  observers: 

Intergovernmental  Organizations 

Food  and  Agriculture  Organization  of  the  United 

Interim  Coordinating  Committee  for  International 
Commodity  Arrangements  of  the  United 

International  Bank  for  Reconstruction  and  Devel- 

International  Monetary  Fund 

Organization  for  European  Economic  Cooperation 

Nongovernmental  Organisations 

International  Federation  of  Master  Cotton  Spin- 
ners' and  Manufacturers'  Association 

Summary  Review  of  World  Cotton  Situation 

The  1949-50  season  has  been  of  special  impor- 
tance for  cotton.  It  is  the  first  in  the  prewar  era 
to  see  an  increase  in  the  world  supply  (carry-over 
plus  production)  of  cotton.  World  production 
has  expanded  on  a  broad  front.  At  about  31  mil- 
lion bales,  it  is  expected  to  exceed  consumption  by 
some  2  million  bales.  This  amount  would  result 
in  a  world  carry-over  of  about  17  million  bales  on 
August  1,  1950,  this  carry-over  being  actually  and 
proportionately  the  greatest  in  the  United  States. 
Keintroduction  of  acreage  restrictions  in  the 
United  States  and  Egypt  will  affect  production  in 
the  1950-51  season.  Despite  prospective  expan- 
sion in  the  Indian  Union,  Pakistan,  and  elsewhere, 
the  global  production  in  1950-51  will  possibly  be 
moderately  smaller  than  in  the  current  season. 

World  consumption  of  cotton,  estimated  at  ap- 
proximately 29  million  bales  in  1949-50,  has  shown 
relatively  little  change  in  the  past  4  seasons  and 

is  still  slightly  less  than  the  prewar  (1934-38) 
average.  Unsettled  conditions  in  the  Far  East 
and  the  rebuilding  of  textile  inventories  in  other 
areas  are  among  the  local  and  short-term  factors 
offsetting  each  other  in  the  current  season.  In  the 
face  of  substantial  increases  over  prewar  levels  in 
general  economic  activity  and  in  consumption  of 
other  fibers,  the  failure  of  cotton  consumption  to 
expand  is  a  world  problem  of  great  importance. 
The  review  concludes  that  it  is  difficult  to  envisage 
any  significant  and  sustained  advance  in  global 
cotton  consumption  in  the  near  future,  with  cotton 
and  cotton  textile  prices  at  current  levels,  and  in 
the  context  of  the  continuing  world  dollar  short- 
age, unless  special  mitigating  arrangements  are 

International  trade  in  cotton  has  made  further 
gains,  and  world  exports  in  1949-50  are  expected 
to  total  11.5  million  bales — half  a  million  bales 
more  than  in  1948-49.  The  increased  movement, 
chiefly  in  dollar  cottons,  has  been  given  assist- 
ance by  United  States  foreign  aid  programs  and 
impetus  by  the  prospect  of  a  smaller  crop  in  the 
United  States  next  season. 

Prices  for  cotton  in  national  currencies  have  fol- 
lowed divergent  courses  in  1949-50,  moving  up- 
ward sharply  in  countries  where  currencies  were 
devalued  and  receding  slightly  in  others.  At  the 
same  time,  the  United  States  price  supports  were 
again  operative  and  continued  to  influence,  to  some 
extent,  world  prices  for  medium  staples.  Since 
the  announcement  of  acreage  restrictions  for  the 
1950-51  crop  in  the  United  States,  market  prices 
have  been  stronger. 

The  review  draws  attention  to  the  intensified 
competition  from  rayon,  which  had  a  price  advan- 
tage over  cotton  in  all  major  consuming  countries 
in  1949-50.  This  advantage  was  greatly  enhanced 
in  Europe  as  a  result  of  the  higher  cost  of  cotton 
following  devaluation.  The  displacement  of  cot- 
ton by  rayon  is  to  some  extent  affected  by  consum- 
ers' preferences  for  cotton,  on  the  one  hand,  and 
by  insufficient  supply  of  rayon  on  the  other.  In 
the  latter  connection,  note  is  taken  of  the  fact  that 
in  countries  where  rayon  production  is  not  already 
close  to  the  limit  of  capacity  it  is  expanding  rap- 

Resolutions  Approved 


It  is  Resolved: 

That  Messrs.  Price,  Waterhouse  and  Company's  "Re- 
port and  Summary  of  Cash  Receipts  and  Disbursements 
for  the  Fiscal  Year  ending  June  30,  1949"  contained  in 
their  letter  of  August  22,  1949,  be  accepted  along  with 
the  Secretariat's  statement  of  the  financial  position  of  the 
Committee  as  of  March  31,  1950. 


It  is  Resolved: 

(1)  That  the  Standing  Committee  be  authorized  to  ap- 
prove expenditures  in  the  twelve  months  ending  June 
30,  1951,  in  the  following  amounts : 


Department  of  State  Bulletin 

Salaries,  including  tax  reimbursements $48, 000 

Office  expenses    (supplies,  printing,  duplicating, 

binding,  etc.) 6,000 

Communications     (cable,    telephone,    telegraph, 

messenger  and  jwstage) 2,000 

Transportation 9,  500 

OflSce  equipment 2,  (XK) 

Miscellaneous  exiHjnses 1,  000 

Total 68,  500 

(2)  That  the  Standing  Committee  be  authorized  to  in- 
crease expenditures,  if  necessary  to  carry  out  the  approved 
program  of  work,  bv  an  amount  not  exceeding  15  percent 
of  the  total  of  $68,500. 

(3)  That  the  Standing  Committee  be  further  authorized 
to  make  such  shifts  and  adjustments  of  funds  from  one 
item  to  another  within  the  total  as  it  shall  find  to  be  in 
the  best  interest  of  the  work. 

resolution  iii 


A  graduated  scale  for  contributions  by  member  govern- 
ments was  established  by  Resolution  II  of  the  Sixth 
Plenary  Meeting,  based  on  Ave  categories  of  contributions 
according  to  the  annual  average  of  total  cotton  exports 
and  imports  in  the  five  years  of  1934-35  through  1938-39, 


It  is  deemed  that  postwar  trade  in  cotton  is  insuffi- 
ciently stabilized  to  afford  a  basis  for  a  revision  of  the 
scale  of  contributions, 

Jt  is  Resolved: 

(1)  That  assessments  of  member  governments  be  made 
according  to  the  formula  adopted  for  1947-48,  based  on 
the  annual  average  of  total  cotton  exported  and  imported 
in  the  five  years,  1934-35/1938-39,  insofar  as  practicable, 

(2)  That  assessments  in  1950-51  conform  to  the  fol- 
lowing schedule : 

Group  I      Over  4.000,000  bales $12, 000 

United  States 

Group  II    2,000,000  to  4,000,000  bales 8, 000 

United  Kingdom 

Group  III  500,000  to  2,000,000  bales 4, 000 

Brazil  Indian  Union 

China  Italj; 

Egypt  Pakistan 


Group  IV  100,000  to  500,000  bales 2,500 

Anglo-Eiiyptian       Canada 

Sudan  Czechoslovakia 

Argentina  Mexico 

Austria  Netherlands 


Group  V    Less  than  100,000  bales 1,  000 




Total 71,000 

(3)  That  the  contribution  of  a  government  newly  ac- 
ceding to  membership  in  the  International  Cotton  Ad- 
visory Committee  at  any  time  during  a  fiscal  .vear  shall  be 
the  annual  assessment  as  calculated  in  accordance  with 
Section  (1)  of  this  Resolution,  multiplied  by  the  number 
of  quarters  of  the  year  in  which  the  government  is  a  mem- 
ber and  divided  by  four. 

(4)  That  on  resignation  of  a  member,  no  refund  shall 
be  made  of  any  part  of  that  member's  contribution  for  any 
unexpired  portion  of  a  financial  year  remaining  at  the 
time  of  the  member's  resignation. 

July  24,   1950 

895251—50 4 

(5)  That  the  Standing  Committee  be  requested  to  sub- 
mit to  the  10th  Plenary  Meeting  a  revised  schedule  of 
assessments  of  contributions  for  member  governments 
for  the  year  1951-52,  and  to  consider  ways  and  means  of 
increasing  the  revenues  of  the  Committee  such  as  making 
a  charge  for  copies  of  its  publications  distributed  to  other 
than  member  governments. 

resolution  iv 

Whereas  : 

A  Reserve  Fund  has  been  set  up  in  accordance  with 
Resolution  II  of  the  Sixth  Plenary  Meeting  and  Resolu- 
tion VI  of  the  Seventh  Plenary  Meeting,  and 

Whereas  : 

The  Reserve  Fund  on  July  1,  1948  was  $50,000.00,  and 


A  Working  Fund  is  needed  from  which  to  defray  the 
operating  expenses  of  the  Committee, 

It  is  Resolved: 

(1)  That  the  Plenary  Committee  declare  that  the 
amount  of  Reserve  Fund  on  July  1,  1949,  was  $50,000.00. 

(2)  That  Paragraphs  3,  4,  and  5  of  Resolution  VI, 
Seventh  Plenary  Meeting  continue  to  be  applicable  to 
the  Reserve  Fund. 

(3)  That  any  funds  of  the  Committee  in  excess  of 
$50,000.00  shall  constitute  the  Working  Fund. 


Whereas  : 

It  was  agreed  in  Resolution  VII  of  the  Eighth  Plenary 
Meeting  that  invitations  to  accede  to  the  International 
Cotton  Advisory  Committee  be  held  open  to  all  members 
of  the  United  Nations  of  the  Food  and  Agriculture  Organ- 
ization of  the  United  Nations,  having  a  substantial  inter- 
est in  cotton ;  and  that  the  Standing  Committee  be  au- 
thorized to  consider  and  to  act  upon  applications  for 
membership  from  any  other  government  having  a  sub- 
stantial interest  in  cotton. 

It  is  Resolved: 

(1)  That  the  Standing  Committee  be  requested  to 
send  to  all  governments  eligible  under  Resolution  VII  of 
the  Eighth  Plenary  Meeting  formal  invitations  to  accede 
to  the  Committee, 

(2)  That  the  authority  of  the  Standing  Committee  to 
consider  and  act  upon  the  applications  of  other  govern- 
ments to  accede  to  the  Committee  be  reaffirmed, 

(3)  That  the  Standing  Committee  be  requested  to  es- 
tablish forthwith  procedures  for  acting  upon  any  ac- 
ceptance, application,  or  withdrawal  by  such  govern- 


Whereas  : 

The  action  developing  from  Resolution  VIII  of  the 
Eighth  Plenary  Meeting  has  yielded  very  useful  results 
and  promises  further  benefits, 

It  is  Resolved: 

(1)  To  reaffirm  Resolution  VIII  of  the  Eighth  Plenary 

(2)  To  recommend  again  to  member  governments  that 
where  satisfactory  organizational  measures  have  not  al- 
ready been  taken  for  this  purpose,  they  consider  favorably 
the  establishment  of  a  National  Coordinating  Agency  or 
the  designation  of  an  existing  office  to  provide  the  Secre- 
tariat with  all  the  information  referred  to  in  Resolution 
VIII  of  the  Eighth  Plenary  Meeting  as  well  as  to  distrib- 


ute  to  appropriate  agencies  and  officers  of  tlieir  govern- 
ments all  the  information  and  material  received  from 
the  Secretariat,  and  generally  to  keep  in  close  contact 
with  it, 

(3)  To  recommend  again  to  member  governments  that 
they  ascertain  that  statistical  and  other  information  re- 
quested by  the  Secretariat,  as  specified  in  Annex  A  of 
Resolution  VIII  of  the  Eighth  Plenary  Meeting,  be  sup- 
plied regularly  and  rapidly. 


Whereas  : 

Adequate  data  on  the  prices  of  cotton  are  of  special 
importance,  and 

Whereas  : 

It  is  not  now  possible  to  compute  prices  of  various 
growths  on  a  world-wide  basis, 

/*  is  Resolved: 

That  member  governments  examine  their  facilities  for 
assembling  price  statistics  in  their  respective  countries 
and  consider  the  desirability  and  possibility  of  further 
practical  measures  for  the  improvement  of  their  price 

resolution  viii 

Whereas  : 

The  Committee  appreciates  the  excellent  reports  on  the 
Developing  World  Cotton  Situation  prepared  by  the  Stand- 
ing Committee  and  Secretariat,  and 

Where^as  : 

The  information  and  Statistics  furnished  in  these  re- 
ports are  very  valuable  and  some  of  the  suggestions  made 
by  the  Standing  Committee  on  various  items  merit  con- 
tinued consideration,  and 


The  Committee  also  appreciates  the  high  quality  of  the 
Monthly  Review  and  Quarterly  Statistical  Bulletin  pre- 
pared by  the  Secretariat 

It  is  Resolved: 

(1)  That  this  Plenary  Committee  place  on  record  Its 
indebtedness  to  the  Chairman,  members  of  the  Standing 
Committee,  the  Secretariat,  and  others  who  participated 
in  the  preparation  of  these  reports,  and 

(2)  That  Parts  A  and  B  of  the  "Report  on  the  Develop- 
ing World  Cotton  Situation,"  prepared  by  the  Secretariat 
and  the  Standing  Committee  as  working  documents  for 
the  Ninth  Plenary  Meeting  of  the  International  Cotton 
Advisory  Committee,  be  printed  and  sold  to  the  public, 
including  as  an  annex  the  relevant  resolutions  of  this 

Note  :  Resolution  VIII  was  adopted  with  the  reservation  that 
no  restricted  material  supplied  by  other  international  bodies 
would  be  published. 


It  is  Resolved: 

To  continue  to  publish 

(a)  The  Monthly  Review  of  the  World  Cotton  Situation 
in  accordance  with  the  following  schedule: 

Publication  date 

July  15,  1950 
August  15,  1950 
September  15,  1950 
October  15,  1950 
November  15,  1950 

Containing  information 
received  through 
June  30,  19.50 
Julv  31,  1950 
August  31,  1950 
September  30,   1950 
October  31,  1950 

December  15,  1950 
January  15,  1951 
February  15,  1951* 
March  15,  1951 
April  15,  1951 
May  15,  1951 
June  15,  1951 

November  30,  1950 
December  31,  1950 
January  31,  1951 
February  28,  1951 
March  31,  1951 
April  30,  1951 
May  31,  1951 

•To  Include  annual  statement  on  the  World  Cotton  Situation 
prepared  for  the  Tenth  Meeting  of  the  Plenary  Committee,  and 

(b)  The  Quarterly  Statistical  Bulletin  for  cotton  and 
competing  fibers  in  accordance  with  the  following 
schedule : 

September  15,  1950 
December  15,  1950 

March  15,  1951 
June  15, 1951 


information    is    lacking    on    the    following 

Whereas  : 


It  is  Resolved: 

That  the  Secretariat  undertake  the  work  specified 
below : 

(1)  The  publication  of  information  and  statistics  as 
they  become  available  of 

(a)  The  production  of  cotton  in  individual  countries 
by  staple  length  and  grade ; 

(b)  The  United  States  C.C.C.  stocks,  by  staple  length 
and  grade ;  and  the  price  policy  regarding  same  from  time 
to  time ; 

(2)  An  investigation  into  the  availability  of  informa- 
tion concerning  the  supply  of  textile  machinery,  report- 
ing to  the  next  (Tenth)  Plenary  Meeting  and  if  possible 
making  an  interim  report  before  then ; 

(3)  The  transmittal  of  such  condensed  and  bibliograph- 
ical Information  as  is  published  and  can  be  obtained  from 
member  governments  on : 

(a)  Relative  production  costs  and  farm  incomes 
from  cotton  and  food  crops  including  methods  of  account- 
ing and  actual  results  of  investigations  undertaken; 

(b)  New  discoveries  in  the  field  of  pest  controL 


It  is  Resolved: 

That  the  following  draft  Resolution  submitted  by  the 
Peruvian  Delegate  be  referred  to  the  Standing  Committee 
for  consideration  and  for  such  action  as  It  deems  desir- 
able, bearing  in  mind  budgetary  limitations. 

"Wherbias  : 

Resolution  (Document  26)  of  the  Fifth  Plenary  Meet- 
ing, May  1946,  states  in  item  8  'That  the  official  and  work- 
ing languages  of  the  International  Cotton  Advisory  Com- 
mittee be  the  same  as  those  adopted  by  the  United  Na- 

Whereias  : 

It  Is  convenient  to  the  Spanish-speaking  people  for  their 
full  understanding  of  the  work  of  this  Committee  and  its 

It  is  Resolved: 

That  all  the  proceedings  and  information  now  being 
compiled  by  the  International  Cotton  Advisory  Committee 
and  all  subsequent  proceedings  and  data,  be  published  in 


resolution  xii 

Whereas  : 

(1)  Governments  are  concerned  to  increase  general 
standards  of  living  for   their  populations,   the  more  so 


Department  of  State  Bulletin 

after  the  disruption  of  national  economies  caused  by  the 

(2)  Governments  are  concerned  that  farmers  receive 
remunerative  prices  for  their  output, 

(o)  If  both  these  objectives  are  to  be  met,  production 
and  price  policies  must  be  evolved  which  give  due  regard 
to  the  interests  of  both  producers  and  consumers, 

(4)  World  cotton  consumption  has  not  increased  since 
1947  in  proportion  to  the  general  recovery  in  economic 
activity  and  the  rise  in  population, 

(5)  Cotton  production  since  the  end  of  the  war  has 
increased  in  the  dollar  area,  but  remains  below  prewar 
levels  in  some  other  areas,  due  mainly  to  the  need  for 
food  crops, 

(6)  Cotton  stoclis  increased  in  1949/50  for  the  first 
time  since  the  war,  mostly  in  the  United  States,  resulting 
in  the  reintroduction  of  acreage  controls  in  that  country ; 
while  at  the  same  time  cotton  stocks  have  decreased  else- 

(7)  Postwar  international  trade  in  cotton  is  still  greatly 
hampered  by  the  world-wide  dollar  shortage, 

(S)  Very  outstanding  results  have  already  been  at- 
tained in  the  field  of  genetics  and  methods  of  production, 

(9)  The  relatively  higher  price  of  cotton  may  in  itself 
have  an  unfavorable  influence  on  the  consumption  of 
cotton,  and  may  stimulate  recurring  surplus  production, 

(10)  Most  of  the  non-dollar  cottons  currently  enjoy 
over  the  doUar  cottons  relatively  wider  price  differentials 
than  the  normal  price  premiums  and  discounts  accounted 
for  by  the  difference  in  quality  and  grade, 

(11)  Technological  progress  has  considerably  improved 
the  quality  of  synthetic  fibers,  at  the  same  time  reducing 
costs  materially,  resulting  in  keener  competition  with 
cotton,  which  has  been  intensified  by  the  effect  of  de- 
valuation in  many  countries, 

It  is  Resolved: 

That  the  Meeting  express  in  terms  of  the  following  para- 
graphs, A  through  F,  its  views,  conclusions,  and  recom- 
mendations with  respect  to  measures  that  governments 
might  appropriately  take  to  improve  the  conditions  for 
consumption  of  cotton. 

A.  Cotton  Consumption 

The  Committee  considers  that  for  various  reasons, 
Including  the  low  level  of  incomes  in  many  countries  and 
the  failure  of  cotton  consumption  to  respond  to  rises  in 
the  level  of  incomes  in  other  countries,  the  present  ag- 
gregate level  of  world  consumption  of  cotton  is  unsatis- 
factory, particularly  In  view  of  the  general  objective  of 
member  governments  of  promoting  for  their  populations 
minimum  standards  of  clothing  (along  with  food  and 

The  population  in  the  countries  where  the  level  of 
income  is  low  is  generally  very  dense  and  under-clothed, 
and  even  a  small  Increase  in  the  per  capita  consumption 
of  cotton  and  cotton  goods  in  these  countries  would  bring 
about  a  large  over-all  increase  in  world  consumption  of 

With  a  view  to  creating  conditions  favorable  for  the 
expansion  of  cotton  consumption  but  without  requesting 
any  preferential  treatment  for  cotton  vis-S-vis  other 
fibers,  the  Committee  invites  all  member  governments 
to  examine  the  factors  which  appear  to  hamper  such  ex- 
pansion and  when  appropriate  to  modify  national  policies 
which  may  contribute  to  this  result,  having  special  regard 
to  the  following  fields : 

1.  The  practicability  of  reducing  or  removing  im- 
pediments, whether  fiscal,  commercial,  or  by  other  regu- 
lations, on  the  exports  and  imports  of  cotton  and  cotton 
goods  and  on  the  flow  of  internal  trade  in  cotton  and 
cotton  goods ; 

2.  Promoting  a  study  of  national  clothing  habits 
and  assisting  manufacturers  to  popularize  suitable  cloth- 
ing items  with  necessary  sales  promotion ; 

3.  Encouraging  technical  assistance  in  the  field 
both  of  agricultural  and  industrial  production; 

July  24,  1950 

4.  Supplying  of  cotton  textile  machinery  on  an  easy 
and  long-term  commercial  basis ;  and 

5.  Promoting  research  and  developing  alternative 
uses  of  cotton. 

B.  Cotton  and  the  Balance  of  Payments 

While  recognizing  that  balance-of-payments  difficul- 
ties are  a  world-wide  problem,  the  solution  of  which  is 
not  within  the  scope  of  this  Committee,  it  seems  never- 
theless appropriate  to  remind  member  governments  that 
the  level  of  textile  activity  in  the  world  is  still,  and  will 
be  for  years  to  come,  highly  dependent  upon  the  main- 
tenance of  large  exports  of  raw  cotton  from  hard  currency 
countries,  which  are  at  present  largely  made  possible  by 
exceptional  methods  of  financing. 

The  Committee  invites  the  Standing  Committee  to 
follow  developments  in  the  balance-of-payments  situation 
as  it  affects  cotton  and  to  report  on  the  matter  at  the 
Tenth  Plenary  Meeting. 

C.  Prices 

Recognizing  fully  the  essential  objective  of  protecting 
both  the  level  and  the  stability  of  cotton  growers'  income 
and  providing  textiles  for  a  living  standard  as  high 
as  possible,  and  calling  the  member  governments'  atten- 
tion to  outstanding  and  progressive  achievements  in  the 
field  of  synthetic  fibers,  the  Committee: 

1.  Invites  the  Governments  of  all  producing  coun- 
tries to  give  serious  consideration  to  such  modification  of 
their  respective  national  production  and  price  policies  as 
may  be  required  to  enable  the  world's  consumers  of  cot- 
ton and  cotton  goods  to  receive  the  maximum  benefit  from 
improvements  in  technology  and  efficiency,  and  thereby 
to  contribute  to  the  maintenance  of  cotton's  position  as 
the  most  widely  used  and  popular  textile  fiber  and  to  an 
Improvement  of  cotton's  competitive  position; 

2.  Invites  the  Governments  of  all  consuming  coun- 
tries to  take  all  practicable  measures  to  increase  the  effi- 
ciency of  production  and  distribution  of  cotton  goods ; 

3.  Invites  all  member  governments  to  make  every 
effort  to  keep  the  greatest  possible  quantity  of  cotton 
flowing  in  international  trade  at  fair  and  reasonable 

D.  Research 

The  Committee  draws  the  attention  of  the  member 
governments  to  the  fact  that  research  efforts  are  more 
than  ever  necessary.  It  is  only  insofar  as  such  research 
in  cotton  production,  manufacturing  and  distribution 
meets  with  increasing  success  that  cotton  will  be  able  to 
maintain  its  outstanding  position  in  the  textile  world, 
and  that  cotton  farmers  will  be  able  to  maintain  a  satis- 
factory outlet  for  the  production  of  their  land.  Member 
governments  are  requested  to  send  their  published  infor- 
mation, which  may  be  of  special  interest  to  other  govern- 
ments, to  the  Secretariat  for  distribution. 

E.  Concessional  Price  Arrangements 

The  Committee,  fully  aware  that  the  aggregate  con- 
sumption of  cotton  depends  on  the  quantity  of  cotton  and 
cotton  goods  which  can  effectively  move  into  international 
trade  from  producing  to  consuming  countries  and  noting 
the  present  dilBculties  which  impede  such  international 
trade,  feels  that  every  effort  should  be  undertaken  to 
increase  it. 

Very  serious  objections  in  principle  have  been  raised 
against  exceptional  devices  as  being  incompatible  with  the 
normal,  free  flow  of  trade. 

The  Committee  has  therefore  not  found  any  possibility 
of  elaborating  an  arrangement  of  this  kind,  which  would 
help  to  solve  the  ditficulties,  but  if  member  governments 
develop  specific  proposals  regarding  concessional  prices 
for  cotton  and  cotton  goods,  they  may  be  presented  to  the 
Standing  Committee  for  study  and  report  to  the  Tenth 
Plenary  Meeting.  Any  such  proposal  should  relate  to 
trade  over  and  above  normal  trade  and  contain  adequate 
safeguards  for  the  protection  of  the  interests  of  other 
exporting  and  importing  countries. 


F.  International  Cotton  Agreement 

Having  in  mind  the  present  tendency  of  world  cotton 
production  to  exceed  effective  demand  and  the  unstable 
factors  in  the  world  cotton  trade  situation,  the  Committee 
anticipates  that  the  Standing  Committee,  under  its  original 
terms  of  reference,  will  keep  the  vporld  cotton  situation 
under  continuous  review  and  will  make  such  recommenda- 
tions to  member  governments  as  it  deems  appropriate 
and  compatible  with  their  international  obligations. 

The  Committee  notes  the  discussion  of  intergovern- 
mental measures  relating  to  commodity  agreements  pre- 
pared by  the  Interim  Coordinating  Committee  for  Inter- 
national Commodity  Arrangements  of  the  United  Na- 
tions, which  appears  in  Section  A  of  the  Report  on  the 
Developing  World  Cotton  Situation,  and  invites  the  Stand- 
Committee  to  consider  these  measures  in  relation  to  cot- 
ton and  to  report  to  the  Tenth  Plenary  Meeting. 


Whereas  : 

The  Government  of  Pakistan  through  its  delegation  has 
invited  the  Committee  to  hold  its  Tenth  Plenary  Meeting 
in  Pakistan  in  the  second  fortnight  of  February  1951,  and 

Wherel^s  : 

It  has  been  determined  that  an  opening  date  approxi- 
mating February  20,  1951,  will  be  convenient  alike  to  the 
Government  of  Pakistan  and  to  the  Committee, 

It  is  Resolved: 

(1)  That  the  Committee  accept  the  gracious  invitation 
of  the  Government  of  Pakistan,  and 

(2)  That  a  letter  be  addressed  to  the  Government  of 
Pakistan  expressing  the  warm  thanks  and  appreciation 
of  the  Committee. 

resolution  xiv 

Wheehias  : 

The  Government  of  India  through  its  delegation  has 
expressed  a  desire  to  extend  a  most  cordial  invitation  to 
the  Committee  to  hold  its  Tenth  Plenary  Meeting  in  India 
and  has  in  conclusion  expressed  its  desire  to  be  host  to 
the  Committee  at  some  future  date, 

It  is  Resolved: 

(1)  That  the  Committee  express  to  the  Government  of 
India  warm  thanks  and  appreciation  and 

(2)  That  the  Committee  take  note  of  the  interest  of 
the  Government  of  India  for  the  future. 


It  is  Resolved: 

(1)  That  the  Delegates  to  this  Ninth  Plenary  Meeting 
of  the  International  Cotton  Advisory  Committee  express 
to  the  Government  of  the  United  States  their  appreciation 
and  thanks  for  the  excellent  arrangements  made  for  this 
Meeting  and  for  the  hospitality  and  courtesy  with  which 
they  have  been  received ; 

(2)  That  they  express  thanks,  particularly  to  the 
Chairman  of  this  Meeting,  the  Honorable  Charles  F.  Bran- 
nan  ;  the  Vice  Chairman,  Mr.  Edwin  D.  White ;  the  Secre- 
tary General,  Dr.  Arthur  W.  Palmer,  and  to  the  other 
members  of  the  Secretariat  and  of  the  International  Con- 
ferences Division  of  the  State  Department  for  their  per- 
sonal contributions  to  the  success  of  the  present  Meeting ; 

(3)  That  they  wish  the  Chairman  to  convey  to  the 
Government  of  the  United  States  and  its  officials  this 
expression  of  their  appreciation. 

Fourth  Session  of  the  Contracting  Parties 

to  the  General  Agreement  on  Tariffs  and  Trade 

by  Melvin  E.  Sinn 

The  Conference  recently  held  at  Geneva  from 
February  22  to  April  3,  1950,  was  the  latest  in  a 
series  convened  in  accordance  with  the  provisions 
of  article  XXV  of  the  General  Agreement  on 
Tariffs  and  Trade,  which  provide  that : 

Representatives  of  the  Contracting  Parties '  shall  meet 
from  time  to  time  for  the  purpose  of  giving  effect  to  those 
provisions  of  tliis  Agreement  which  involve  joint  action 
and,  generally,  with  a  view  to  facilitating  the  operation 
and  furthering  the  objectives  of  this  Agreement. 

Three  previous  sessions  of  the  Contracting 
Parties  have  been  held :  the  first  at  Habana  in 
1948,  the  second  at  Geneva  from  August-Septem- 
ber 1948,  and  the  third  at  Annecy,  France,  from 

The  words  "Contracting  Parties"  are  capitalized  when 
used  in  the  collective  sense  of  the  contracting  parties 
acting  jointly. 

April-August  1949,  where  tariff  negotiations  were 
held  concurrently.  The  fact  that  more  countries 
were  represented  at  the  fourth  session  of  the  Con- 
tracting Parties  than  at  any  previous  session  indi- 
cates the  importance  which  nations  are  attribut- 
ing to  cooperative  action  in  the  field  of  interna- 
tional trade.  The  following  countries  were  repre- 
sented at  the  Conference  as  contracting  parties : 
Australia,  Belgium,  Brazil,  Burma,  Canada, 
Ceylon,  Chile,  Czechoslovakia,  France,  India, 
Luxembourg,  Netherlands,  New  Zealand,  Norway, 
Pakistan,  Southern  Ehodesia,  the  Union  of  South 
Africa,  the  United  Kingdom,  and  the  United 
States.  During  the  course  of  the  session,  Greece 
and  Indonesia,  who  were  also  represented  at  the 
Conference,  became  contracting  parties.  The 
Netherlands  sponsored  Indonesia  under  the  pro- 
visions of  Article  XXVI  of  the  Agreement. 


Department  of  Slate  Bulletin 

Denmark,  the  Doiuiiiican  Republic,  Finland, 
Italy,  Sweden,  and  Ui'uguay,  who  participated  in 
the  1949  Annecy  taritf  negotiations,  were  repre- 
sented, and  all  except  Ui'iiguay  have  now  acceded 
to  the  Agreement.  Austria,  the  German  Federal 
Republic,  and  Turkey  were  also  represented  and 
expect  to  partici]iate  in  the  next  round  of  tariff 
negotiations.  Observers  at  the  Conference  in- 
cluded representatives  from  the  International 
Monetary  Fund,  the  Economic  Commission  for 
Europe,  the  Organization  for  European  Economic 
Cooperation,  and  the  Allied  High  Conmiission. 
During  the  session,  notice  of  withdrawal  from  the 
Agreement  was  received  from  the  Nationalist 
Government  of  China. 

The  United  States  delegation  to  the  Conference 
was  headed  by  Ambassador  Henry  F.  Grady, 
■with  John  W.  Evans,  chief  of  the  Economic  Re- 
sources and  Security  Staff  of  the  Department  of 
State,  as  vice  chairman. 

Work  of  the  Conference 

As  in  previous  sessions,  the  Conference  pro- 
ceeded by  first  considering  items  in  plenary  ses- 
sion and  then  referring  those  which  required 
further  study  to  working  groups.  For  purposes 
of  analysis,  the  business  covered  by  the  fourth 
session  can  be  roughly  divided  into  three  cate- 
gories: (A)  preparations  for  the  next  round  of 
tariff  negotiations,  (B)  examination  of  trade 
practices,  and  (C)  other  problems  arising  from 
the  operation  of  the  Agreement. 

Preparation  for  the  Tariff  Negotiations 

One  of  the  most  important  tasks  of  the  Con- 
ference was  to  make  advance  preparations  for  the 
third  round  of  tariff  negotiations  which  had  been 
decided  upon  by  the  third  session  at  Annecy.  The 
Contracting  Parties  accepted  an  invitation  from 
the  United  Kingdom  to  hold  the  negotiations, 
•which  will  begin  on  September  28  of  this  year, 
at  Torquay,  England.  They  also  decided  to  holcl 
their  fifth  session  at  the  same  place  beginning  on 
November  2,  the  two  conferences  to  run  concur- 
rently. The  Torquay  tariff  negotiations  will  be  on 
a  large  scale,  with  approximately  40  countries  par- 
ticipating. About  400  separate  bilateral  negotia- 
tions will  take  place,  as  compared  with  123  com- 
pleted at  Geneva  in  1947  and  147  at  Annecy  in 

Revalidation  of  Geneva  and  Annecy  Schedules 

In  preparing  for  the  forthcoming  tariff  negotia- 
tions, the  Contracting  Parties  were  anxious  to  in- 
sure that  the  negotiations  will  not  be  made  the  oc- 
casion for  raising  tariffs,  even  though  the  technical 
right  exists  in  article  XXVIII  to  adjust  individual 
rates  in  the  tariff  schedules  after  January  1,  1951. 
To  achieve  this  purpose,  the  Contracting  Parties 
considered  a  proposal  designed  to  extend  the  as- 
sured life  of  the  Geneva  and  Annecy  schedules 

July  24,   1950 

for  a  further  period  beyond  January  1, 1951.  Al- 
though the  Contracting  Parties  decided  not  to  take 
any  definitive  action  before  the  Torquay  negotia- 
tions, they  did  pass  a  resolution  recommending 
that  such  an  extension  be  made  and  further  that  in- 
dividual contracting  parties  take  the  steps  neces- 
sary to  be  in  a  position  to  extend  until  January 
1,  1954,  the  assured  life  of  the  tariff  schedules 
when  the  Torquay  negotiations  are  completed. 

The  Contracting  Parties  also  reaffirmed  the  rule, 
followed  at  previous  negotiations,  that  the  binding 
of  a  low  tariff  rate  should  be  considered  equivalent 
in  principle  to  the  substantial  reduction  of  a  high 

Participation  of  Switzerland 

In  September  1949,  Switzerland  had  been  in- 
vited to  participate  in  the  third  round  of  tariff 
negotiations  and  in  her  reply  had  indicated  cer- 
tain special  difficulties  which  she  anticipated  would 
result  from  acceptance  of  the  obligations  of  the 
Agreement.  The  Contracting  Parties  examined 
several  proposals  by  which  they  hoped  to  meet 
these  difficulties  and  enable  Switzerland  to  par- 
ticipate. After  long  and  sympathetic  considera- 
tion, however,  the  Conti'acting  Parties  concluded 
that  none  of  the  particular  proposals  advanced 
could  both  meet  the  Swiss  position  and  be  regarded 
as  satisfactory  to  the  Contracting  Parties.  The 
Contracting  Parties  hoped  that  a  way  might  still 
be  found  within  the  letter  and  spirit  of  the  Agree- 
ment for  Switzerland  to  participate. 

Participation  of  Western  Germany 

A  vote  of  17-1  rejected  a  proposal  by  Czecho- 
slovakia that  Western  Germany  should  be  excluded 
from  the  Torquay  negotiations. 


The  Contracting  Parties  conducted  an  extensive 
survey  of  the  use  of  quantitative  restrictions  in 
the  light  of  the  requirements  of  the  Agreement  and 
approved  two  reports  on  the  subject.  The  first 
report  consists  of  a  close  examination  of  the 
various  techniques  used  in  the  imposition  of  quan- 
titative restrictions  on  imports  and  exports  and 
suggests  specific  measures  to  minimize  their  harm- 
ful effects.  The  second  report  considers  the  dis- 
criminatory application  of  import  restrictions  per- 
mitted by  the  postwar  transitional  period  arrange- 
ments of  the  Agreement. 

Review  of  Quantitative  Restrictions  on  Imports 
and  Exports 

The  final  report  of  the  Contracting  Parties  re- 
flected general  agreement  that,  with  certain  minor 
exceptions,  the  following  types  of  export  restric- 
tions were  inconsistent  with  the  provisions  of  the 
General  Agreement : 

(a)  Those  export  restrictions  used  by  one  coun- 


try  for  the  purpose  of  obtaining  the  relaxation  of 
another  country's  import  restrictions. 

(b)  Those  export  restrictions  imposed  by  one 
country  to  obtain  a  relaxation  of  another  coun- 
try's export  restrictions  on  commodities  in  short 
supply  or  to  obtain  an  advantage  in  the  procure- 
ment from  another  country  of  such  commodities. 

(c)  Restrictions  imposed  by  a  country  on  the 
export  of  raw  materials  in  order  to  protect  a  do- 
mestic fabricating  industry. 

(d)  Export  restrictions  used  by  a  coimtry  to 
avoid  price  competition  among  its  exporters. 

On  the  import  side,  the  Contracting  Parties 
agreed  that  every  effort  should  be  made  to  mini- 
mize the  incidental  protective  effect  resulting  from 
the  imposition  of  quantitative  restrictions  even 
where  those  restrictions  were  imposed  legitimately 
for  balance-of-payments  reasons.  The  report  sug- 
gested several  methods  of  accomplishing  this  ob- 
j  ecti ve.  It  urged  members  to  avoid  encouragement 
of  investment  in  enterprises  which  could  not  sur- 
vive without  protection  when  the  balance-of-pay- 
ments justification  for  such  protection  has  disap- 
peared. The  report  also  urged  the  members  to  take 
every  opportunity  to  impress  upon  producers,  re- 
ceivmg  incidental  protection  from  balance-of-pay- 
ments restrictions,  the  temporary  nature  of  the 
restrictions.  It  asked  countries  to  administer  such 
restrictions  as  are  necessary  on  a  flexible  basis  and 
to  adjust  them  to  changing  circumstances.  The 
report  agreed  that  where  quotas  are  necessary, 
they  should  preferably  be  unallocated  and  should 
apply  without  discrimination  to  as  many  countries 
as  possible. 

The  report  cited  certain  instances  of  the  misuse 
of  import  restrictions : 

(a)  Maintenance  by  a  country  of  balance-of- 
payments  restrictions  which  give  priority  to  im- 
ports of  particular  products  on  the  basis  of  the 
competitiveness  or  noncompetitiveness  of  such  im- 
ports with  a  domestic  industry. 

(b)  The  imposition  by  a  country  of  administra- 
tive obstacles  to  the  full  utilization  of  import 
quotas  in  order  to  afford  protection  to  a  domestic 

(c)  The  use  of  import  restrictions  as  a  means  of 
retaliation  against  a  country  which  has  refused 
to  conclude  a  bilateral  trade  agreement  with  the 
country  concerned. 

The  report  also  recommended  that  each  con- 
tracting party  review  its  system  of  import  and 
export  restrictions  in  the  light  of  the  report  and 
that  officials  responsible  for  the  administration  of 
quantitative  restrictions  and  those  engaged  in 
negotiating  bilateral  agreements  be  made  familiar 
with  the  conclusions  reached. 

Discriminatory  Application  of  Import 

The  Contracting  Parties  examined  the  docu- 
mentation submitted  on  the  discriminatory  appli- 

cation of  import  restrictions  under  the  transitional 
arrangements  of  article  XIV  and  annex  J  of  the 
Agreement  and  prepared  the  first  in  a  series  of 
annual  reports  required  by  the  provisions  of  para- 
graph 1  (g)  of  article  XIV.  The  report  is  based 
on  information  received  from  20  countries  which 
are  applying  import  restrictions  under  these  tran- 
sitional arrangements.  It  indicates  that  although 
many  countries  have  made  rapid  strides  in  elim- 
inating their  balance-of-payments  difficulties,  they 
have  not  yet  been  able  to  earn  the  amounts  of  hard 
currencies  which  their  importers  would  desire  to 
expend  under  a  regime  of  nondiscriminatory  im- 
portation. They  have,  therefore,  had  to  conserve 
their  hard-currency  earnings  for  essential  imports 
while,  at  the  same  time,  allowing  their  importers 
a  relatively  greater  degree  of  freedom  with  respect 
to  purchases  in  the  soft-currency  areas. 

Because  the  Agreement  contemplates  that  rela- 
tive prices  shall  still  be  an  important  factor  in 
determining  the  source  of  imports,  even  in  the  case 
of  countries  permitted  to  discriminate  as  between 
hard-  and  soft-currency  areas,  close  examination 
was  made  of  the  administrative  devices  used  to 
implement  this  objective. 

The  Contracting  Parties  also  considered  the 
effect  of  bilateral  agreements  on  trade  patterns. 
They  concluded  that  although  devaluation  and  in- 
creased production  had  done  much  to  minimize  the 
effect  of  bilateral  agreements,  a  danger  existed  that 
such  arrangements,  together  with  the  relatively 
high  prices  prevailing  in  certain  soft-currency 
areas,  might  attract  exports  that  would  otherwise 
have  been  sent  to  dollar  markets  and  assisted  in 
easing  balance-of-payments  difficulties. 

The  Contracting  Parties  also  utilized  informa- 
tion obtained  during  the  examination  of  individual 
countries'  import  restrictions  to  determine  which 
countries  should  be  invited  to  consult  at  the  next 
session  with  respect  to  intensifications  in  their  im- 
poi"t  programs.  The  most  important  members  in 
this  category  are  the  sterling  area  countries,  which, 
in  July  1949,  agreed  to  attempt  to  reduce  their 
dollar  imports  by  25  percent  below  the  1948  level. 
Australia,  Ceylon,  Chile,  India,  New  Zealand, 
Pakistan,  Southern  Rhodesia,  and  the  United 
Kingdom  were  invited  to  consult  at  the  fifth 



Rectifications  and  Modifications  of  Schedules 

The  problem  of  rectifications  and  modifications  is 
a  highly  technical  one,  involving  careful  work  in 
the  correction  of  errors  in  the  tariff  schedules  an- 
nexed to  the  General  Agreement.  The  Contract- 
ing Parties  approved  rectifications  to  the  authentic 
texts  of  the  Geneva  and  Annecy  tariff  schedules 
of  a  number  of  countries,  correcting  errors  in  cer- 
tain parts  of  these  schedules,  and  also  approved 
corrections  in  annex  C  of  the  General  Agreement 
and  in  the  "First  Protocol  of  Modifications."    An- 


Department  of  Slate  Bulletin 

nex  C  contains  a  list  of  temtories  which  are  con- 
nected with  the  Benelux  Customs  Union  by 
common  sovereignty  or  relations  of  protection  or 
suzerainty,  while  the  "First  Protocol  of  Modifica- 
tions'" contains  revisions  affecting  certain  articles 
of  the  General  Agreement.  The  results  were  em- 
bodied in  a  Protocol  of  Rectifications  which  was 
opened  for  signature  at  the  end  of  tlie  session  and 
signed  by  John  W.  Evans  for  the  United  States. 

Australian  Fertilizer  Subsidies 

The  Contracting  Parties  examined  a  complaint 
by  Chile  with  respect  to  an  Australian  subsidy  on 
imports  of  ammonium  sulphate.  The  Chilean 
complaint  protested  against  Australia's  retention 
of  a  subsidy  on  imports  of  ammonium  sulphate 
when  a  similar  subsidy  had  been  removed  from  im- 
ports of  sodium  nitrate,  a  competing  product  of 
Chile.  The  Contracting  Parties,  although  decid- 
ing that  the  Australian  action  was  not  contrary  to 
the  Agreement,  took  into  consideration  the  fact 
that  a  subsidy  had  been  paid  on  both  products  at 
the  time  that  a  tariff  concession  on  sodium  nitrate 
had  been  granted  by  Australia  at  the  1947  negotia- 
tions. The  Contracting  Parties  therefore,  acting 
under  the  provisions  of  article  XXIII  of  the 
Agreement,  on  "Nullification  and  Impairment," 
recommended  an  adjustment  by  Australia  which 
would  remove  any  competitive  inequality  which 
the  Australian  action  had  created. 

Economic  Development  Measures 

The  Contracting  Parties  considered  applica- 
tions under  article  XVIII  of  the  Agreement  by 
Haiti,  Ceylon,  and  Syria  and  Lebanon  for  per- 
mission to  use  special  measures  to  promote  their 
economic  development.  They  rejected  the  appli- 
cation of  Syria  and  Lebanon  because  those  coun- 
tries had  failed  to  supply  the  information  required 
to  determine  whether  the  criteria  of  the  Agree- 
ment were  complied  with.  Subject  to  certain  limi- 
tations and  conditions,  they  granted  a  waiver  to 
Ceylon  for  a  period  of  5  years  to  permit  the  regu- 
lation of  the  importation  of  cotton  verties,  or 
sarongs,  in  order  to  promote  the  development  of  a 
local  industry.  In  the  case  of  Haiti,  action  on  an 
application  for  a  release  to  cover  a  measure  for 
protection  of  its  tobacco  products  industry  was 
scheduled  for  consideration  at  the  next  session. 


The  Contracting  Parties  approved  a  revised 
budget  report  for  1949-50.  It  was  designed  to 
take  into  account  the  contributions  of  governments 
expecting  to  accede  to  the  Agreement  at  the  third 
round  of  tariff  negotiations  and  also  the  contri- 
bution of  Indonesia  which  became  a  contracting 
party  during  the  course  of  the  session. 

Derestriction  of  Documents 

In  order  that  the  work  of  the  Contracting 
Parties  might  be  made  more  readily  accessible  to 

businessmen,  students,  research  workers,  journal- 
ists, and  the  public  in  general,  the  Contracting 
Parties  unanimously  approved  a  proposal  by  the 
United  States  which  would  automatically  dere- 
strict most  conference  documents  90  days  after  the 
end  of  a  session. 

Waiver  on  U.S.  Potato  hnports 

A  request  by  the  United  States  was  granted, 
permitting  the  United  States  to  alter  the  figure 
in  its  tariff  schedule  which  determines  the  quantity 
of  potatoes  that  may  be  imported  at  the  reduced 
rate  of  duty  negotiated  in  1947.  Under  the  waiver, 
the  United  States  may  limit  the  importation  of 
table  stock  potatoes  at  the  reduced  rate  to  1  million 
bushels,  plus  any  amount  by  which  the  domestic 
crop  in  1950  shall  fall  below  335  million  bushels, 
instead  of  350  million  as  originally  provided  in 
the  Agreement. 

Special  Exchange  Agreements 

Under  the  provisions  of  article  XV  of  the 
Agreement,  contracting  parties  not  members  of 
the  International  Monetary  Fund  must  either  be- 
come members  of  the  Fund  or  sign  a  special  ex- 
change agreement  having  substantially  equivalent 
effect.  The  Contracting  Parties  examined  the 
position  of  countries  affected  by  the  provisions  of 
this  article  and  also  considered  proposals  to  im- 
plement the  procedural  aspects  of  the  special  ex- 
change agreements. 

Application  of  Norwegian  Tariff  Conxiessions 

Because  of  the  inability  of  the  new  Norwegian 
Storting  to  act  by  April  30,  1950,  the  Contracting 
Parties  agreed  to  extend  to  June  30,  1950,  the  date 
by  which  Norway  must  put  into  effect  its  Annecy 
tariff  concessions. 

MEN  for  Japan 

At  the  close  of  the  session,  the  United  States 
made  a  short  statement  indicating  that  she  still 
considered  it  desirable  for  the  Contracting  Parties 
to  devise  some  way  of  extending  most-favored- 
nation  treatment  to  Japan  on  a  reciprocal  basis 
and  that  the  question  may  be  raised  at  the  fifth 


This  latest  session  of  the  Contracting  Parties 
has  again  proved  the  value  of  the  General  Agree- 
ment as  a  vital  and  effective  force  in  setting  stand- 
ards of  fair  practices  in  international  trade,  in 
providing  a  forum  for  the  hearing  and  settlement 
of  disputes,  and  in  exerting  a  constant  influence 
in  the  direction  of  restoring  world  trade  to  a  multi- 
lateral and  nondiscriminatory  basis. 

The  General  Agreement,  although  young  in 
years,  has,  nevertheless,  demonstrated  itself  to  be 
mature,  dynamic,  and  effective  in  its  operation. 

i»lY  24,   1950 


German  Participation 
in  International  Bodies  ^ 

It  is  the  policy  of  the  Allied  Governments,  an- 
nounced in  the  Petersberg  protocol,  to  promote 
and  encourage  German  membership  of  all  the  rec- 
ognized international  bodies.  In  this  regard  the 
Petersberg  agreement  states : 

The  High  Commission  and  the  Federal  Government  are 
agreed  to  promote  the  participation  of  Germany  in  all 
those  international  organizations  through  which  German 
experience  and  support  can  contribute  to  the  general 

Since  the  Petersberg  agreement  was  signed  (No- 
vember 22,  1949)  considerable  progress  has  been 
made  in  the  accession  of  Western  Germany  to  in- 
ternational bodies. 

Following  is  a  list  of  international  organiza- 
tions to  which  the  Federal  Government  adheres: 

1.  Organization  for  European  Economic  Co- 
operation (Oeec). 

2.  International  Authority  for  the  Euhr. 

3.  Customs  Committee  of  the  European  Cus- 
toms Union  Study  Group. 

4.  International  Union  for  the  Publication  of 
Customs  Tariffs. 

5.  International  Wlieat  Council. 

6.  Central  Rhine  Commission. 

Following  are  the  organizations  and  confer- 
ences in  which  the  Federal  Government  has  par- 
ticipated or  will  participate : 

1.  Meetings  of  Contracting  Parties  to  the  Gen- 
eral Agreement  on  Tariffs  and  Trade  (Gatt). 
(German  observer.) 

2.  Third  Assembly  of  the  World  Health  Organ- 
ization (Who).     (German  observers.) 

3.  International  Anti-VD  Commission  of  the 
Rhine  (  Who  ) .     ( Part  of  Who.  ) 

4.  International  Labor  Organization  (Ilo)  Con- 
ferences : 

(a)  On  Social  Insurance  and  Working  Con- 
ditions of  Rhine  Boatmen  (Oct.,  Nov.,  Dec.  1950). 
(German  delegation.) 

(b)  33rd  Session  of  Ilo  Conference.  (Ger- 
man observers.) 

(c)  Committee  for  Chemical  Industries 
(April  1950).     (German  observers.) 

(d)  Preliminary  Conference  on  Migration 
(April  1950).     (Gennan  observers.) 

(e)  Preparatory  Tripartite  Technical  Con- 
ference on  Training  Adults.   (German  observers.) 

5.  Invitation  extended  by  Dutch  Government  to 
Federal  Government  to  send  a  representative  to 

'Reprinted  from  Information  Bulletin  of  U.  S.  High 
Commissioner  for  Germany  of  July  1950. 


Conferences  of  Italian  and  Austrian  Experts  on 
Tobacco  Production  to  be  held  in  Rome  in  Septem- 
ber 1950.     (German  delegation  will  attend.) 

6.  Conference  on  the  Control  of  Plant  Diseases — 
Holland,  April-May  1950.  (German  representa- 
tives attended.) 

7.  International  Committee  for  Colorado  Beetle 
Control,  Florence,  January  1950.  (German  rep- 
resentatives attended. ) 

8.  Conference  on  Agricultural  Technology  held 
under  Fag  auspices  in  Geneva  in  March  1950. 
(German  observers.) 

9.  Meeting  of  the  International  Seed  Testing 
Authority  (United  States  Government-spon- 
sored).    (German  observers.) 

10.  Biennial  Art  Exposition,  Venice,  June  1950. 
(German  exhibits.) 

11.  International  Congress  at  Groningen,  June 
1950,  on  occasion  of  the  160th  anniversary  of  the 
founding  of  the  Royal  Netherlands  Institute  for 
the  Deaf  and  Mute.  (German  representatives 

12.  International  Poplar  Committee,  Geneva 
April  18-21.     (German  experts  attended.) 

Following  are  the  international  organizations  in 
which  German  participation  has  been  or  is  under 
consideration  by  the  Allied  High  Commission : 

1.  United  Nations  Food  and  Agriculture  Or- 
ganization (Fao). 

2.  United  Nations  Educational,  Scientific  and 
Cultural  Organization  (Unesco). 

3.  International  Committee  for  Bird  Preserva- 

4.  Twenty-eighth  International  Industrial  Ex- 
hibition, Padua,  June  1950. 

Following  are  the  international  organizations 
in  which  participation  has  been  invited  and  is 
under  consideration  by  the  Federal  Government : 

1.  International  Patent  Office  at  The  Hague. 

2.  International  Wine  Office. 

3.  International  Commissions,  established  under 
the  Fishery  Convention  of  Juno  1885  among  the 
Netherlands,  Switzerland  and  Germany,  on  (i) 
Rhine  pollution  and  (ii)  salmon  fishery. 

4.  Twenty-fourth  International  Congress  on 
Sociology  to  be  held  in  Rome  in  September  1950. 

5.  United  Nations  Social  Activities  Division. 

G.  The  International  Office  for  Animal  Diseases 

in  Paris. 

7.  Eighth  International  Congress  of  Agricul- 
tural Industries  (Invitation  from  Permanent  Na- 
tional Agricultural  Committee  of  Belgium). 

8.  International  Refrigerator  Car  Company. 

9.  Fourteenth  Levant  Fair,  Paris,  September 

10.  Permanent  International  Agricultural  Ex- 
position in  Tehran,  October  1950. 

Department  of  State  Bulletin 

U.S.  Delegations  to  International  Conferences 

Agricultural  Industries 

The  Department  of  State  announced  on  June 
22  that  Dr.  Guido  Edward  Hilbert,  chief,  Bureau 
of  Agricultural  and  Industrial  Chemistry,  De- 
partment of  Agriculture,  has  been  named  United 
States  delegate  to  the  Eighth  International  Con- 
gress of  Agricultural  Industries,  to  be  held  at 
Brussels  from  July  9-15.  The  American  Am- 
bassador at  Brussels  has  been  requested  to  name 
a  member  of  the  Embassy  to  act  as  alternate  for 
Dr.  Hilbert. 

This  Congress  is  one  of  a  series  of  meetings 
organized  in  various  capitals  of  Europe  by  the 
International  Commission  of  Agricultural  Indus- 
tries, which  has  its  headquarters  at  Paris,  for  the 
purpose  of  developing  new  and  improved  agricul- 
tural techniques  for  use  in  combating  malnutri- 
tion. The  United  States  Government  is  not  a 
member  of  the  Commission,  but  it  has  sent  offi- 
cial delegates  to  several  of  the  previous  congresses. 
The  Seventh  Congress  was  held  at  Paris  in  July 

Discussions  at  the  forthcoming  meeting  will 
cover  such  subjects  as  the  development  of  agricul- 
tural industries  in  tropical  countries,  the  world 
market  for  raw  foodstuffs,  agricultural  produc- 
tion, and  agricultural  sciences. 

Sugar  Council 

The  Department  of  State  announced  on  June 
26  that  Elmer  F.  Kruse,  Assistant  Administrator 
for  Commodity  Operations,  Production  and  Mar- 
keting Administration,  Department  of  Agricul- 
ture, has  been  named  United  States  delegate  to  the 
meeting  of  the  Special  Committee  of  the  Inter- 
national Sugar  Council  at  London  beginning  on 
June  26.  Others  on  the  United  States  delegation 

Alternate  Delegate 

Lawrence  Myers,  director,  Sugar  Branch,  Production  and 
Marketing  Administration,  Department  of  Agriculture 


Stanley  Andrews,  director.  Office  of  Foreign  Agricultural 
Relations,  Department  of  Agriculture 

Howard  H.  Tewksbury,  director,  Office  of  East  Coast  Af- 
fairs, Department  of  State 

James  C.  Foster,  director.  Commodities  Division,  Office 
of  International  Trade,  Department  of  Commerce 

Francis  A.  Linville,  assistant  chief.  Economic  Resources 
and  Security  Staff,  Department  of  State 

Paul  O.  Nyhus,  agricultural  attach^,  American  Embassy, 

Adviser  and  Secretary 

Catherine  T.  Corson,  Sugar  Branch,  Production  and  Mar- 
keting Administration,  Department  of  Agriculture 

In  1948,  the  International  Sugar  Council  es- 
tablished the  Special  Committee  to  make  a  study 
of  the  sugar  situation  with  a  view  to  ascertaining 
the  need  for  negotiating  a  new  international  sugar 
agreement.  The  effective  provisions  of  the  exist- 
ing International  Sugar  Agreement,  which  came 
into  force  on  September  1,  1937,  have  not  been  in 
operation  since  the  outbreak  of  World  War  II, 
although  the  Council,  which  was  established  pur- 
suant to  terms  of  the  agreement,  continued  to 
function  as  a  standby  organization  to  keep  the 
sugar  situation  under  study. 

At  the  forthcoming  meeting  of  the  Special  Com- 
mittee, approximately  20  sugar-exporting  and  im- 
porting countries  will  discuss  the  world  sugar  out- 
look and  the  Cuban  proposal  for  a  new  inter- 
national sugar  agreement.  The  meeting  will  also 
decide  whether  sufficient  areas  of  agreement  exist 
among  sugar-exporting  and  importing  countries 
to  warrant  the  convening  of  a  conference  in  the 
fall  of  1950  to  negotiate  a  new  international  sugar 

High  Tension  Electric  Systems 

The  Department  of  State  announced  on  June 
29  tliat  the  United  States  delegation  to  the  thir- 
teenth session  of  the  International  Conference  on 
Large  High  Tension  Electric  Systems,  wliich  con- 
vened at  Paris  on  June  29  is  as  follows : 


B.  Robert  deLuccia,  Chief,  Bureau  of  Power,  Federal 
Power  Commission 

Vice  Chairman 

Frederic  Attwood,  Chairman,  United  States  National 
Committee,  International  Conference  on  High  Tension 
Electric  Systems 

July  24,   1950 



Eugene  O.  Crittenden,  Associate  Director,  National  Bu- 
reau of  Standards,  Department  of  Commerce 

Orin  A.  Demuth,  Cliief,  Brancli  of  System  Engineering, 
Bonneville  Power  Administration,  Department  of  the 
Interior,  Portland,  Oreg. 

Carl  H.  Giroux,  Special  Assistant,  Corps  of  Engineers, 
Department  of  the  Army 

Cecil  L.  Killgore,  Assistant  to  the  Chief  Designing  Engi- 
neer, Bureau  of  Reclamation,  Department  of  the 
Interior,  Denver,  Colo. 

The  International  Conference  on  Large  High 
Tension  Electric  Systems,  founded  in  March  1921, 
is  an  organization  with  a  membership  of  approxi- 
mately 1,400  technicians,  executives,  and  govern- 
mental officials  from  various  countries.  Its 
members  meet  biennially  to  exchange  information 
on  the  most  recent  progress  in  design,  construc- 
tion, and  operation  of  high  tension  electric 

The  work  of  this  session  is  divided  into  four 
sections  as  follows:  (1)  generation,  transforma- 
tion, and  rupture  of  current;  (2)  construction, 
insulation,  and  maintenance  of  overhead  and  un- 
derground lines;  (3)  operation,  protection,  and 
interconnection  of  networks;  and  (4)  higher 
voltages  than  that  actually  used. 

Study  Group  on  Germany 

The  Department  of  State  announced  on  June 
30  that  Lewis  W.  Douglas,  American  Ambassador, 
London,  and  the  United  States  member  of  the 
Intergovernmental  Study  Group  on  Germany,  will 
attend  the  first  meeting  of  this  body  at  London 
beginning  July  3,  1950.  Other  members  of  the 
United  States  delegation  are : 

Alternate  United  States  Member 

Jacques  J.  Reinstein,  Director,  Office  of  German  Economic 
Affairs,  Department  of  State 

Special  Adviser 

Samuel  Reber,  Counselor,  Office  of  the  United  States  High 
Commissioner  for  Germany,  Frankfort  on  the  Main, 

Assistant  to  the  United  States  Member 

William  C.  Trimble,  First  Secretary,  American  Embassy, 


John  W.  Auchincloss,  OflSce  of  German  Political  Affairs, 
Department  of  State 

John  A.  Calhoun,  Deputy  Director,  Office  of  German  Polit- 
ical Affairs,  Department  of  State 

Robert  Eisenberg,  Economic  Specialist,  Office  of  German 
Economic  Affairs,  Department  of  State 

George  H.  Jacobs,  Acting  Officer  in  Charge,  Office  of  Ger- 
man Economic  Affairs,  Department  of  State 

Brunson  MacChesney,  Professor  of  LavF,  Northwe.stern 
University  Law  School,  Chicago,  111. 

Covey  T.  Oliver,  Professor  of  Law,  University  of  Cali- 
fornia Law  School,  Berkeley,  Calif. 

Gardner  Palmer,  Adviser,  Office  of  Financial  and  Develop- 
ment Policy,  Department  of  State 

Henry  Parkman,  United  States  Representative  on  Inter- 
national Authority  for  the  Ruhr,  American  Consulate 
General,  Frankfort  on  the  Main,  Germany 

John  M.  Raymond,  Assistant  Legal  Adviser,  Office  of  the 
Legal  Adviser,  Department  of  State 

Legal  Assistant 

Donald  A.  Wehmeyer,  Assistant  to  the  Legal  Adviser, 
Office  of  the  Legal  Adviser,  Department  of  State 

Agreement  to  establish  the  Intergovernmental 
Study  Group  on  Germany  was  announced  in  the 
joint  declaration  on  Germany  issued  at  London 
on  May  14,  1950,  by  Foreign  Ministers  Acheson, 
Bevin,  and  Schuman. 

ECOSOC  CEIeventh  Session) 

The  Department  of  State  announced  on  June 
30  that  Isador  Lubin,  recently  named  by  Presi- 
dent Truman  as  United  States  representative  to 
the  United  Nations  Economic  and  Social  Council, 
will  attend  the  eleventh  session  of  that  body  at 
Geneva  beginning  July  3.  Assisting  Mr.  Lubin  at 
this  session  will  be  the  following : 

Deputy  United  States  Representative 

Walter  Kotschnig,  Director,  Office  of  United  Nations 
Economic  and  Social  Affairs,  Department  of  State 


Robert  E.  Asher,  Alternate  United  States  Representative 
to  the  Economic  Commission  for  Europe,  Geneva 

Kathleen  Bell,  Office  of  United  Nations  Economic  and 
Social  Affairs,  Department  of  State 

Henry  J.  Bitterman,  Adviser,  Office  of  International 
Finance,  Department  of  the  Treasury 

John  Gates,  Jr.,  Office  of  United  Nations  Economic  and 
Social  Affairs,  Department  of  State 

Gerhard  Colm,  Economist,  Council  of  Economic  Advisers, 
Executive  Office  of  the  President 

Joseph  Coppock,  Adviser,  Office  of  International  Trade 
Policy,  Department  of  State 

Eleanor  Dennison,  Office  of  United  Nations  Economic  and 
Social  Affairs,  Department  of  State 

Arthur  E.  Goldsehmidt,  Special  Assistant  to  the  Secretary, 
Department  of  the  Interior 

Haldore  Hanson,  Chief,  Technical  Cooperation  Projects 
StatT.  Interim  Office  for  Technical  Cooperation  and 
Development,  Department  of  State 

Gladys  Harrison,  Assistant  General  Counsel,  Office  of  the 
Administrator,  Federal  Security  Agency 

Louis  Henkin,  Division  of  International  Administration, 
Department  of  State 

Frances  Kernohan,  Assistant  Officer  in  Charge,  United 
Nations  Social  Affairs,  Office  of  United  Nations  Eco- 
nomic and  Social  Affairs,  Department  of  State 

Lewis  L.  Lorwin,  Economic  Adviser,  Office  of  International 
Trade,  Department  of  Commerce 

Alvin  Roseman,  United  States  Representative  for  Special- 
ized Agency  Affairs,  Geneva 

Charles  D.  Stewart,  Assistant  Commissioner,  Bureau  of 
Labor  Statistics,  Department  of  Labor 

William  Stibravy,  Office  of  Financial  and  Development 
Policy,  Department  of  State 

Press  Relations  Officer 

Donald  C.  Dunham,  American  Legation,  Bern 

Tlie  Economic  and  Social  Council  was  estab- 
lished in  accordance  with  the  United  Nations 
Charter  as  one  of  the  principal  organs  of  the 
United  Nations  for  the  purpose  of  promoting 
higher  standards  of  living,  full  employment,  eco- 
nomic and  social  progress,  international  cultural 
and  educational  cooperation,  and  respect  for  ob- 
servance of  human  rights  and  fundamental 
freedoms.     Nine    functional    commissions,    three 


Department  of  Sfafe  Bulletin 

regional  commissions,  as  well  as  certain  standing 
and  ad  hoc  committees  and  special  bodies  comprise 
the  structure  of  the  Council.  Eighteen  countries 
are  represented  on  the  Council. 

Since  its  beginning,  the  Council  has  worked  on 
many  projects  in  the  economic  and  social  field,  of 
which  one  of  the  most  recent  is  the  technical  assis- 
tance program.  Through  this  project,  the  Coun- 
cil, in  collaboration  with  the  specialized  agencies, 
is  attempting  to  overcome  conditions  of  poverty, 
disease,  and  hunger  in  underdeveloped  countries 
and  territories.  The  Council's  Commission  on 
Human  Rights  has  prepared  a  draft  international 
covenant  on  human  rights,  and  draft  international 
conventions  regarding  freedom  of  information 
and  of  the  press  have  been  formulated  by  the 
Council's  Subcommission  on  Freedom  of  Infor- 
mation and  of  the  Press.  The  Council  has  been 
active  also  in  such  matters  as  the  care  of  children 
and  displaced  persons,  better  conditions  of  employ- 
ment, the  improvement  and  expansion  of  produc- 
tion and  trade,  and  the  development  of  adequate 
transport  and  communications  facilities. 

Of  the  51  items  on  the  agenda  for  the  forth- 
coming session,  the  following  are  of  primary 
interest  to  the  United  States  Government:  the 
question  of  national  and  international  measures 
required  to  achieve  full  employment;  technical 
assistance  for  the  economic  development  of  under- 
developed areas;  methods  of  financing  economic 
development ;  convention  on  statelessness;  the  con- 
tinuing needs  of  children;  and  the  development 
of  a  long-range  program  of  social  welfare.  In 
addition,  the  Council  will  review  reports  of  seven 
functional  commissions,  three  regional  commis- 
sions, and  eight  specialized  agencies.  The  Council 
will  make  recommendations  regarding  work  in 
the  economic  and  social  fields  to  be  undertaken  or 
discontinued  by  these  commissions,  the  General 
Assembly,  and  the  specialized  agencies  concerned. 

Teaching  of  Geography 

The  Department  of  State  announced  on  July  11 
that  the  United  States  delegation  to  the  United 
Nations  Educational,  Scientific  and  Cultural  Or- 
ganization (Unesco)  international  seminar  on  the 
teaching  of  geography  as  a  means  for  developing 
international  understanding,  to  be  held  at  Mon- 
treal from  July  12-August  23,  is  as  follows : 


Zoe  Agnes  Thralls,  professor  of  education  and  geography, 
University  of  Pittsburgh,  Pittsburgh,  Pa. 


Thomas  P.  Barton,  professor  of  geography,  University  of 

Indiana,  Bloomington,  Ind. 
Sister    Mary   Ursula    Hauk,    teacher   of   geography   and 

English,   .Johnstown   Central   Catholic   High    School, 

Johnstown,  Pa. 
Marion  H.  Seibel,  critic  teacher,  New  York  State  College 

for  Teachers,  Buffalo,  N.  Y. 

The  topic  of  study  for  the  seminar,  which  is  one 
of  a  number  of  seminars  being  sponsored  by 
Unesco,  is  "How  can  the  teaching  of  geography 

Jo/y  24,   7950 

in  its  various  branches — physical  geography,  eco- 
nomic geography,  and  human  geography — be  used 
as  a  means  for  developing  international  under- 
standing?" Emphasis  will  be  placed  on  teaching 
problems  and  methods,  on  the  education  and  train- 
ing of  geography  teachers,  and  on  the  study  of 
practical  techniques  to  be  applied  in  the  classroom. 
The  study  groups  which  will  carry  out  the  work 
of  the  seminar  will  give  consideration  also  to  the 
relationship  between  geography  and  other  subjects 
of  study,  the  use  of  audiovisual  teaching  aids,  and 
suggested  techniques  for  the  use  of  schools  in  war- 
devastated  or  underdeveloped  countries. 

Coffee  Report- 

-Continued  from  page  144 

of  years  in  the  annual  coffee  carry-over  would  ap- 
pear to  support  the  judgment  of  the  subcommittee. 

Recommendation  8  and  the  legislation  proposed 
thereunder,  apparently  contemplate  establishing 
a  withholding  tax  implemented  by  a  tentative 
substantial  withholding  from  transfers  pending 
determination  by  the  Commissioner  of  Internal 
Revenue  of  the  nature  and  results  of  the  transac- 
tions involved  within  the  United  States.  The  ad- 
ministration of  such  a  withholding  tax  would  ap- 
pear to  be  a  difficult  administrative  task  involving 
controls  and  impediments  to  transfers  which 
might  become  of  foreign  policy  concern.  I  believe 
that  this  proposal  should  be  carefully  studied  by 
the  appropriate  agencies.  It  is  my  understanding 
that  the  tax  revision  bill  now  pending  before  other 
committees  of  the  Congress  contains  recommenda- 
tions for  imposing  a  tax  on  the  capital  gains  of 
nonresident  aliens  and  that  the  matter  will  re- 
ceive careful  attention. 

There  are  a  number  of  places  in  the  body  of  the 
report  where  the  drafting  might  have  been  im- 
proved from  the  viewpoint  of  our  foreign  affairs. 
I  should  like  merely  to  refer  to  one  case  in  which 
different  language  would  have  had  a  greater  ap- 
peal to  our  good  neighbors  to  the  soutTi.  This  is 
the  discussion  of  the  award  by  the  Brazilian  Gov- 
ernment of  the  Order  of  the  Southern  Cross  to 
Mr.  Robbins  and  Mr.  Kurtz  which  begins  on  page 
16  and  concludes  at  the  top  of  page  17. 

Before  closing  this  statement  and  attempting  to 
answer  any  questions  you  may  wish  to  ask,  I  should 
like  to  ask  your  aid  in  giving  a  fully  satisfactory 
answer  to  a  question  put  to  Secretary  Acheson 
yesterday  morning  jointly  by  the  Ambassadors 
of  the  coffee-producing  countries.  This  question 
was  whether  the  report  of  your  subcommittee  is 
to  be  considered  as  marking  a  change  in  United 
States  foreign  policy  as  it  relates  to  Latin  Amer- 
ica. I  believe  that  real  doubt  as  to  the  intentions 
of  this  Government  has  been  created  by  the  report. 
The  Department  is  convinced  that  this  is  not  the 
intent  of  the  Committee  and  will,  of  course,  do  its 
best  to  dispel  the  doubt.  I  earnestly  request  that 
you,  in  the  manner  you  may  consider  most  ap- 
propriate, help  the  Department  to  answer  the 
Ambassadors'  question. 


The  United  States  in  the  United  Nations 

July  15-21 

Interim  Committee 

Continuing  consideration  of  the  report  of  the 
Commission  for  Eritrea,  the  Interim  Committee 
heard  the  views  of  Ethiopia,  Italy,  New  Zealand, 
Canada,  and  the  United  States  on  the  disposition 
of  that  former  Italian  colony.  Charles  P.  Noyes 
of  the  United  States  reiterated  that  his  Govern- 
ment continues  to  believe  "the  best  and  most  equit- 
able solution  would  be  the  immediate  incorpora- 
tion of  all  of  Eritrea,  excluding  the  Western 
Province,  into  Ethiopia."  The  United  States  is 
willing,  however,  to  give  careful  consideration  to 
a  compromise  solution  involving  federation  of 
Eritrea  and  Ethiopia  under  the  sovereignty  of  the 
Ethiopian  crown.  Such  a  formula,  he  continued, 
"holds  out  the  best  promise  of  a  harmonious  recon- 
ciliation of  all  the  interests  involved."  He  ex- 
plained the  United  States  opposition  to  either 
independence  or  trusteeship  for  Eritrea. 

Ethiopia  favored  the  union  of  Eritrea  with 
Ethiopia  and  opposed  independence,  the  solution 
with  which  Italy  agreed.  Both  Canada  and  New 
Zealand  supported  our  view  that  some  form  of 
federation  between  Eritrea  and  Ethiopia  would  be 
most  likely  to  harmonize  conflicting  interests. 

International  Court  of  Justice 

An  advisory  opinion  on  the  international  status 
of  Southwest  Africa  was  delivered  by  the  Inter- 
national Court  of  Justice  at  The  Hague  on  July  11 
and  on  the  second  phase  of  the  case  concerning 
interpretation  of  the  peace  treaties  with  Bulgaria, 
Hungary,  and  Rumania  on  July  18. 

In  the  former  opinion,  the  Court  stated  its 
unanimous  view  that  Southwest  Africa  is  a  terri- 
tory under  international  mandate  assumed  by  the 
Union  of  South  Africa  on  December  16,  1920.  In 
its  opinion,  requested  by  the  General  Assembly, 
the  Court,  in  answer  to  three  specific  questions, 
decided:  (a)  by  a  12-2  vote,  that  the  Union  of 
South  Africa  continues  to  have  international  obli- 
gations toward  the  territory  resulting  from  the 
mandate,  including  the  obligation  to  submit  re- 
ports on  the  territory  and  to  transmit  petitions 
from  its  inhabitants,  with  supervisory  functions 

being  exercised  by  the  United  Nations  in  place  of 
the  League  of  Nations  and  reference  to  the  Perma- 
nent Court  of  Intei'national  Justice  being  replaced 
by  reference  to  the  International  Court  of  Justice ; 
(b)  unanimously,  that  the  provisions  of  chapter 
XII  of  the  United  Nations  Charter  (pertaining  to 
the  international  trusteeship  system)  are  appli- 
cable to  the  territory  of  Southwest  Africa  in  the 
sense  that  they  provide  a  means  by  which  it  may 
be  brought  under  the  trusteeship  system,  but,  by  8 
votes  to  6,  that  the  Charter  imposes  no  legal  obli- 
gation on  the  Union  of  South  Africa  to  place  the 
territory  under  trusteeship ;  and  (c)  unanimously, 
that  the  Union  of  South  Africa,  acting  alone,  is 
not  competent  to  modify  the  international  status 
of  Southwest  Africa  but  that  such  competence 
rests  with  the  Union  acting  with  the  consent  of  the 
United  Nations. 

In  general,  the  opinion  sustained  the  views  pre- 
sented to  the  Court  by  the  United  States.  Written 
statements  wei'e  also  filed  by  Egypt,  India,  Poland, 
and  the  Union  of  South  Africa,  and  oral  state- 
ments were  presented  on  behalf  of  the  Philippines, 
the  Union  of  South  Africa,  and  the  United  Nations 

In  the  second  case,  the  Court,  also  in  reply  to 
questions  from  the  General  Assembly,  by  a  vote  of 
11-2,  decided  that,  if  one  party  is  obligated  but 
fails  to  appoint  a  representative  to  a  treaty  com- 
mission under  the  peace  treaties  with  Bulgaria, 
Hungary,  and  Rumania,  the  United  Nations 
Secretary-General  is  not  authorized,  upon  the 
request  of  the  other  party  to  the  dispute,  to  appoint 
the  third  member  of  the  Commission. 

On  March  30  the  Court  had  answered  affirma- 
tively the  first  two  questions  referred  to  it  by  the 
Assembly  in  connection  with  the  alleged  human 
rights  violations  in  Bulgaria,  Hungary,  and 
Rumania.  Those  questions  were  (1)  whether  a 
dispute  subject  to  the  treaty  settlement  provisions 
existed,  and  (2)  if  so,  whether  the  three  countries 
were  obligated  to  appoint  treaty  commission  rep- 
resentatives. Benjamin  V.  Colien  presented  oral 
argument  on  behalf  of  the  United  States  in  both 
phases  of  the  case.  The  Court's  opinion  in  the 
second  phase  rejected  the  contentions  of  the 
United  States. 


Deparfmenf  of  State  Bulletin 

Trusteeship  Council 

Oil  July  14  the  Trusteeship  Council  adopted  a 
resolution  proposed  by  the  United  States  and 
Argentina  which  expressed  the  hope  that  the  ad- 
ministering authorities  of  British  and  French 
Togoland  would  proceed  with  their  plans  for  solu- 
tion of  the  Ewe  problem  in  those  two  territories 
and  would  insure  equitable  representation  on  the 
Consultative  Commission  of  the  various  gi'oups 
residing  in  the  territories;  requested  a  progress 
report  at  the  next  Council  session;  and  recom- 
mended that,  pending  final  settlement  of  the  prob- 
lem, the  common  traits  and  traditions  of  the  Ewe 
people  in  the  two  trust  territories  be  preserved. 
In  the  voting,  only  Iraq  and  the  Philippines 
opposed  the  resolution,  while  China  abstained. 

A  special  report  to  the  General  Assembly  trans- 
mitting the  draft  trusteeship  agreement  for  the 
former  Italian  colony  of  Somaliland  was  approved 
on  July  14.  On  July  20,  the  Council  approved  a 
request  to  the  Assembly  for  funds  for  a  visiting 
mission  to  that  territory,  if  the  draft  trusteeship 
agreement  receives  Assembly  approval,  as  well  as 
to  the  trust  territories  of  Tanganyika  and  Ruanda- 

In  connection  with  the  administering  powers' 
annual  reports  on  the  trust -territories,  the  Coun- 
cil's repoil  to  the  Security  Council  on  the  United 
States  annual  report  on  the  Trust  Territory  of  the 
Pacific  Islands,  a  strategic  area,  was  adopted  on 
July  14  and  the  Council's  report  to  the  General 
Assembly  on  the  British  Togoland  report  on  July 
20.  On  the  latter  date,  the  Council  also  gave  its 
approval  to  the  first  two  parts  of  its  Assembly 
reports  on  Australia's  report  on  Nauru  and  on  the 
French  Togoland  report. 

Economic  and  Social  Council 

The  Economic  and  Social  Council,  in  the  third 
week  of  its  eleventh  session  at  Geneva,  concluded 
general  debate  on  full  employment  and  referred 
the  item  to  the  Economic  Committee  for  more 
detailed  study.  It  also  completed  action  on  the 
reports  of  the  Population  and  Social  Commissions 
and  of  the  Commission  on  Status  of  Women. 

For  its  discussion  of  full  employment,  the  Coun- 
cil had  before  it  the  report  of  a  group  of  experts 
on  "National  and  International  Measures  for  Full 
Employment,"  on  which  member  governments  had 
been  invited  to  submit  their  views.  Isidor  Lubin 
of  the  United  States,  in  his  statement  on  this  re- 
port, told  the  Council  that  American  people  will 
not  again  tolerate  a  major  depression.  "Through 
our  free  institutions,"  he  said,  "we  shall  pursue  a 
policy  of  steadily  rising  production  and  employ- 
ment. We  shall  do  this  not  for  domestic  reasons 
alone.  We  shall  do  it,  also,  because  we  recognize 
the  place  of  American  economy  in  the  world 
economic  and  political  structure." 

Following  a  discussion  of  the  specific  recom- 
mendations  of   the   experts'   report,   Mr.   Lubin 

submitted  a  proposal  that  United  Nations  member 
governments  report  periodically  to  the  Secretary- 
General  on  their  economic  situation  and  their 
policies  and  programs  for  employment.  The  Sec- 
retary-General would  analyze  the  reports  and 
make  studies  on  the  problems  of  full  employment 
in  the  world  economy.  The  reports  and  studies 
would  be  considered  by  the  Economic  and  Employ- 
ment Commission,  whicli  would  make  recom- 
mendations for  action  to  the  Council.  The  United 
States  further  recommended  preparation  of  a 
report  on  underemployment,  particularly  in  under- 
developed countries. 

In  connection  with  the  consideration  of  the 
report  of  the  Social  Commission,  the  Council  ap- 
proved a  long-range  work  program  for  the  Com- 
niission,  a  broad  program  for  social  rehabilitation 
of  the  physically  handicapped,  and  plans  for  revi- 
sion and  expansion  of  the  United  States  advisory 
social  welfare  services.  The  Secretary-General 
was  asked  to  prepare  a  report  on  the  world  social 
situation.  Welfare  of  the  aged,  migration,  social 
rehabilitation  of  the  physically  handicapped  and 
a  declaration  of  child  rights  were  the  topics  of 
other  resolutions. 

Turning  to  the  report  of  the  Commission  on  the 
Status  of  Women,  the  Council  approved  resolu- 
tions dealing  with  a  possible  draft  convention 
grantmg  women  equal  political  rights,  as  well  as  a 
convention  on  the  nationality  of  married  women 
which  the  International  Law  Commission  was 
asked  to  draft.  Political  education  for  women,  the 
role  of  women  in  the  technical  assistance  program, 
the  application  of  penal  law  to  women,  educational 
opportunities  for  women,  the  problem  of  Greek 
mothers  whose  children  have  not  yet  been  repatri- 
ated, and  the  plights  of  male  and  female  survivors 
of  Nazi  concentration  camps  who  were  victims  of 
so-called  scientific  experiments  were  the  subject  of 
other  proposals.  The  United  States  supported  aU 
of  these  resolutions. 

With  approval  of  the  Population  Commission's 
report,  the  Council  endorsed  recommendations  for 
studies  by  the  Secretary- General  of  the  interrela- 
^on  of  demographic,  economic,  and  social  factors. 
This  involved  a  special  field  study  of  this  problem 
in  India,  a  study  which  Walter  Kotschnig,  for  the 
United  States,  strongly  supported  in  the  Social 
Committee's  discussion.  The  Secretary-General 
was  also  asked  to  press  forward  studies  on  migra- 
tion, including  a  study  of  practical  measures^for 
the  international  financing  of  European  migration 
to  underdeveloped  areas.  Another  of  the  recom- 
mendations is  to  call  the  attention  of  the  Technical 
Assistance  Board  to  the  Commission's  recom- 
mendations on  the  demographic  aspects  of  tech- 
nical assistance.  Unless  some  of  the  related  demo- 
graphic aspects  were  elucidated,  Mr.  Kotschnig 
said  in  the  Social  Committee,  it  might  be  difficult 
to  carry  through  some  parts  of  the  technical 
assistance  program. 

July  24,   1950 


General  Policy  Page 

Justice  Based  on  Human  Rights:  A  Threat  to 

TjT-anny.     Address  by  the  President .    .        123 

Assistance  Placed  at  Disposal  of  Unified 
Command  in  Korea.  Statement  by 
Secretary  Acheson 130 

Ambassador  Muccio  Commended  on  Per- 
formance of  Duty  in  Korea 130 

Korean  Foreign  Minister  Expresses  Gratitude 

for  U.S.  Aid 130 

United  States  Policy  in  the  Korean  Crisis  .    .        130 

Soviet  World-Peace  Appeal  Called  Propa- 
ganda Trick.  Statement  by  Secretary 
Acheson 131 

Soviet  "Beetle"  Charge  Labeled  Ridiculous 
Propaganda : 
Communist   Propaganda   Aims   To   Cover 

Pest  Control  Failure 134 

U.S.  Reply  to  Soviet  Note 134 

U.S.  Answers  Czechoslovak  Charges  .    .    .        135 

Treaty  Information 

Soviet  Tactics  Again  Stall  Negotiations  on 
Austrian  Treaty.  Statement  by  Secre- 
tary Acheson 131 

Soviet  Delay  in  Repatriating  German  War 
Prisoners — Complete  Disregard  of  Hu- 
man Rights 132 

U.S.-Spain  Amend  Air  Agreement 135 

The  Need  for  an  International  Trade  Organ- 
ization. Views  of  Maurice  J.  Tobin, 
Secretary  of  Labor 136 

Fourth  Session  of  the  Contracting  Parties  to 
the  General  Agreement  on  Tariffs  and 
Trade.     By  Melvin  E.  Sinn 150 

The  United  Nations  and 
Specialized  Agencies 

The  United  States  in  the  United  Nations  .    .        158 

Occupation  Matters  page 
Soviet   Delay  in   Repatriating  German   War 
Prisoners — Complete   Disregard   of   Hu- 
man Rights 132 

National  Security 

Scope  of  Atomic  Energy  Program  Expanded. 

Statement  by  the  President 129 

International  Organizations  and 

The  World  Cotton  Situation — Report  on 
Ninth  Plenary  Meeting  of  International 

Cotton  Advisory  Committee 145 

Fourth  Session  of  the  Contracting  Parties  to 
the   General  Agreement  on   Tariffs  and 

Trade.     By  Melvin  E.  Sinn 150 

German  Participation  in  International  Bodies  .        154 
U.S.  Delegations: 

Agricultural  Industries 155 

Sugar  Council 155 

High  Tension  Electric  Systems 155 

Study  Group  on  Germany 156 

Ecosoc  (Eleventh  Session) 156 

Teaching  of  Geography 167 

International  Information  and 
Cultural  Affairs 

Americans  Visiting  Abroad 133 

The  Congress 

Clarification  Asked  on  Senate  Coffee  Report. 
Statement  by  Edward  G.  Miller  Assist- 
ant Secretary  for  Inter-American  Affairs  .        140 

The  Department 

Administering  the  Displaced  Persons  Act  of 
1948,  as  Amended.  By  Herv6  J. 
L'Heureux 125 


Melvin  E.  Sinn,  author  of  the  article  on  the  fourth  session  of  the 
Contracting  Parties  to  GATT,  is  foreign  affairs  analyst  on  the  Com- 
mercial Policy  Staff.  Mr.  Sinn  also  accompanied  the  U.S.  delegation 
to  the  Geneva  meeting. 



iJAe/  ^eha/yimteni/  ,(w  tftale^ 


The  President's  Message  to  the  Congress 163 

Authority  of  the  President  To  Repel  Attack 173 

Chronology  of  Events,  1949-50 179 




Ky  Howard  J.  Hilton,  Jr 181 

For  complete  contents  see  back  cover 

Vol.  XXIII,  No.  578 
July  31,  1950 

^,jl».NT    0«, 

^<V»"»  o. 

.jAe  z!/^€fi(M(tment  /w  c/lciie 


Vol.  XXIII,  No.  578  •  Publication  3926 
July  31,  1950 

For  sale  by  the  Superintendent  of  Documents 

U.S.  Government  Printing  Office 

Washington  25,  D.C. 


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Single  copy,  20  cents 

The  printing  of  this  publication  has 
been  approved  by  the  Director  of  the 
Bureau  of  the  Budget  (February  18,  1949). 

Note:  Contents  of  this  publication  are  not 
copyrighted  and  items  contained  herein  may 
be  reprinted.  Citation  of  the  Department 
or  State  Bulletin  as  the  source  will  be 

The  Department  of  State  BULLETIN, 
a  weekly  publication  compiled  and 
edited  in  the  Division  of  Publications, 
Office  of  Public  Affairs,  provides  the 
public  and  interested  agencies  of 
the  Government  with  information  on 
developments  in  the  field  of  foreign 
relations  and  on  the  work  of  the  De- 
partment of  State  and  the  Foreign 
Service.  The  BULLETIN  includes 
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(AS..'w^.  o~l  ^^^rzA^-^y^ji^J::, 

^.  if,  i  ')^'^ 

The  Korean  Situation:  Its  Significance  to  the  People 
of  the  United  States 

The  Presidents  Message  to  the  Congress 

[Released  to  the  press  hy  the  White  House  July  ifl] 

I  am  reporting  to  the  Congress  on  the  situation 
which  has  been  created  in  Korea  and  on  the  actions 
■which  this  Nation  has  tal^en,  as  a  member  of  the 
United  Nations,  to  meet  this  situation.  I  am  also 
laying  before  the  Congress  my  views  concerning 
the  significance  of  these  events  for  this  Nation  and 
the  world  and  certain  recommendations  for  legis- 
lative action  which,  I  believe,  should  be  taken  at 
this  time. 

Background  on  Korean  Invasion 

^At  4  o'clock  in  the  morning,  Sunday,  June  25, 
Korean  time,  armed  forces  from  north  of  the  38th 
parallel  invaded  the  Republic  of  Korea. 

The  Eepublic  of  Korea  was  established  as  an 
independent  nation  in  August  1948,  after  a  free 
election  held  under  the  auspices  of  the  United  Na- 
tions. This  election,  which  was  originally  in- 
tended to  cover  all  of  Korea,  was  held  only  in  the 
part  of  the  Korean  peninsula  south  of  the  38th 
parallel,  because  the  Soviet  Government,  ip^hich 
occupied  the  peninsula  north  of  that  parallel,  re- 
fused to  allow  the  election  to  be  held  in  the  area 
under  its  control. 

The  United  States,  and  a  majority  of  the  other 
members  of  the  United  Nations,  have  recognized 
the  Republic  of  Korea.  The  admission  of  Korea 
to  the  United  Nations  has  been  blocked  by  the 
Soviet  veto. 

In  December  1948,  the  Soviet  Government 
stated  that  it  had  withdrawn  its  occupation  troops 
from  northern  Korea  and  that  a  local  regime  had 
been  established  there.  The  authorities  in  north- 
ern Korea  continued  to  refuse  to  permit  United 
Nations  observers  to  pass  the  38th  parallel  to  su- 
pervise or  observe  a  free  election  or  to  verify  the 
withdrawal  of  Soviet  troops. 

Nevertheless,  the  United  Nations  continued  its 
efforts  to  obtain  a  freely  elected  government  for 
all  of  Korea,  and  at  the  time  of  the  attack,  a  United 

My  37,   7950 

Nations  Commission,  made  up  of  representatives 
of  seven  nations — Australia,  China,  El  Salvador, 
France,  India,  the  Philippines,  and  Turkey — was 
in  the  Republic  of  Korea. 

Just  1  day  before  the  attack  of  June  25,  field  ob- 
servers attached  to  the  United  Nations  Commis- 
sion on  Korea  had  completed  a  routine  tour,  last- 
ing 2  weeks,  of  the  military  positions  of  the 
Republic  of  Korea  south  of  the  38th  parallel.  The 
report  of  these  international  observers  stated  that 
the  army  of  the  Republic  of  Korea  was  organized 
entirely  for  defense.  The  observers  found  the 
parallel  guarded  on  the  south  side  by  small  bodies 
of  troops  in  scattered  outposts,  with  roving  pa- 
trols. They  found  no  concentration  of  troops  and 
no  preparation  to  attack.  The  observers  con- 
cluded that  the  absence  of  armor,  air  support, 
heavy  artillei-y,  and  military  supplies  precluded 
any  offensive  action  by  the  forces  of  the  Republic 
of  Korea. 

On  June  25,  within  a  few  hours  after  the  in- 
vasion was  launched  from  the  north,  the  Commis- 
sion reported  to  the  United  Nations  that  the  at- 
tack had  come  without  warning  and  without  prov- 

The  reports  from  the  Commission  make  it  un- 
mistakably clear  that  the  attack  was  naked,  de- 
liberate, unprovoked  aggression,  without  a  shadow 
of  justification. 

This  outright  breach  of  the  peace,  in  violation  of 
the  United  Nations  Charter,  created  a  real  and 
present  danger  to  the  security  of  every  nation. 
This  attack  was,  in  addition,  a  demonstration  of 
contempt  for  the  United  Nations,  since  it  was  an 
attempt  to  settle,  by  military  aggression,  a  ques- 
tion which  the  United  Nations  had  been  working 
to  settle  by  peaceful  means. 

The  attack  on  the  Republic  of  Korea,  therefore, 
was  a  clear  challenge  to  the  basic  principles  of  the 
United  Nations  Charter  and  to  the  specific  actions 
taken  by  the  United  Nations  in  Korea.     If  this 


challenge  had  not  been  met  squarely,  the  effective- 
ness of  the  United  Nations  would  have  been  all 
but  ended,  and  the  hope  of  mankind  that  the 
United  Nations  would  develop  into  an  institution 
of  world  order  would  have  been  shattered. 

U.N.  Action 

Prompt  action  was  imperative.  The  Security 
Council  of  the  United  Nations  met,  at  the  request 
of  the  United  States,  in  New  York  at  2  o'clock  in 
the  afternoon,  Sunday,  June  25,  eastern  daylight 
time.  Since  there  is  a  1-i-hour  difference  in  time 
between  Korea  and  New  York,  this  meant  that 
the  Council  convened  just  24  hours  after  the  at- 
tack began. 

At  this  meeting,  the  Security  Council  passed  a 
resolution  which  called  for  the  immediate  cessa- 
tion of  hostilities  and  for  the  withdrawal  of  the 
invading  troops  to  the  38th  parallel,^  and  which 
i-equested  the  members  of  the  United  Nations  to  re- 
frain from  giving  aid  to  the  northern  aggi'essors 
and  to  assist  in  the  execution  of  this  resolution. 
The  representative  of  the  Soviet  Union  to  the 
Security  Council  stayed  away  from  the  meeting, 
and  the  Soviet  Government  has  refused  to  support 
the  Council's  resolution. 

The  attack  launched  on  June  25  moved  ahead 
rapidly.  The  tactical  surprise  gained  by  the  ag- 
gressors, and  their  superiority  in  planes,  tanks, 
and  artillery,  forced  the  lightly  armed  defenders 
to  retreat.  The  speed,  the  scale,  and  the  coordina- 
tion of  the  attack  left  no  doubt  that  it  had  been 
plotted  long  in  advance. 

Wlien  the  attack  came,  our  Ambassador  to 
Korea,  John  J.  Muccio,  began  the  immediate  evac- 
uation of  American  women  and  children  from  the 
danger  zone.  To  protect  this  evacuation,  air 
cover  and  sea  cover  were  provided  by  the  Com- 
mander in  Chief  of  United  States  Forces  in  the 
Far  East,  General  of  the  Army  Douglas  MacAr- 
thur.  In  resjjonse  to  urgent  appeals  from  the 
Government  of  Korea,  General  MacArthur  was 
immediately  authorized  to  send  supplies  of  am- 
munition to  the  Korean  defenders.  These  sup- 
plies were  sent  by  air  transport,  with  fighter  pro- 
tection. The  United  States  Seventh  Fleet  was  or- 
dered north  from  the  PhilipiDines,  so  that  it  might 
be  available  in  the  area  in  case  of  need. 

Throughout  Monday,  June  26,  the  invaders  con- 
tinued their  attack  with  no  heed  to  the  resolution 
of  the  Security  Council  of  the  United  Nations. 
Accordingly,  in  order  to  support  the  resolution, 
and  on  the  unanimous  advice  of  our  civil  and  mili- 
tary authorities,  I  ordered  United  States  air  and 
sea  forces  to  give  the  Korean  Government  troops 
cover  and  support. 

On  Tuesday,  June  27,  when  the  United  Nations 
Commission  in  Korea  had  reported  that  the  north- 
ern troops  had  neither  ceased  hostilities  nor  with- 
drawn to  the  38th  parallel,  the  United  Nations 

'  Bulletin  of  July  3,  1050,  p.  4. 

Security  Council  met  again  and  passed  a  second 
resolution  recommending  that  members  of  the 
United  Nations  furnish  to  the  Republic  of  Korea 
such  aid  as  might  be  necessary  to  repel  the  attack 
and  to  restore  international  peace  and  security  in 
the  area.^  The  representative  of  the  Soviet  Union 
to  the  Security  Council  stayed  away  from  this 
meeting  also,  and  the  Soviet  Government  has  re- 
fused to  support  the  Council's  resolution. 

World  Response  to  U.N.  Action 

The  vigorous  and  unhesitating  actions  of  the 
ITnited  Nations  and  the  United  States  in  the  face 
of  this  aggression  met  with  an  immediate  and 
overwhelming  response  throughout  the  free  world. 
The  first  blow  of  aggression  had  brought  dismay 
and  anxiety  to  the  hearts  of  men  the  world  over. 
The  fateful  events  of  the  1930's,  when  aggression 
unopposed  bred  more  aggression  and  eventually 
war,  were  fresh  in  our  memory. 

But  the  free  nations  had  learned  the  lesson  of 
historJ^  Their  determined  and  united  actions  up- 
lifted the  spirit  of  free  men  everywhere.  As  a 
result,  where  there  had  been  dismay  there  is  hope ; 
where  there  had  been  anxiety  there  is  firm 

Fifty-two  of  the  59  member  nations  have  sup- 
])orted  the  United  Nations  action  to  restore  peace 
in  Korea. 

A  number  of  member  nations  have  offered  mili- 
tary support  or  other  types  of  assistance  for  the 
United  Nations  action  to  repel  the  aggressors  in 
Korea.  In  a  third  resolution,  passed  on  July  7, 
the  Security  Council  requested  the  United  States 
to  designate  a  commander  for  all  the  forces  of  the 
members  of  the  United  Nations  in  the  Korean  op- 
eration and  authorized  these  forces  to  fly  the 
United  Nations  flag.^  In  response  to  this  resolu- 
tion. General  MacArthur  has  been  designated  as 
commander  of  these  forces.  These  are  important 
steps  forward  in  the  development  of  a  United 
Nations  system  of  collective  security.  Already, 
aircr*t  of  two  nations — Australia  and  Great 
Britain — and  naval  vessels  of  five  nations — Aus- 
tralia, Canada,  Great  Britain,  the  Netherlands, 
and  New  Zealand — -have  been  made  available  for 
operations  in  the  Korean  area,  along  with  forces 
of  Korea  and  the  United  States,  under  General 
MacArthur's  command.  The  other  offers  of  as- 
sistance that  have  been  and  will  continue  to  be 
made  will  be  coordinated  by  the  United  Nations 
and  by  the  unified  command,  in  order  to  support 
the  effort  in  Korea  to  maximum  advantage. 

All  the  members  of  the  United  Nations  who 
have  endorsed  the  action  of  the  Security  Council 
realize  the  significance  of  the  step  that  has  been 
taken.  This  united  and  resolute  action  to  put 
down  lawless  aggression  is  a  milestone  toward  the 
establishment  of  a  rule  of  law  among  nations. 

"■  Bulletin  of  July  3.  1950,  p.  7. 
=  Bulletin  of  July  17,  1950,  p.  83. 

Department  of  Stale  Bulletin 

Only  a  few  countries  have  failed  tb  support  the 
common  action  to  restore  the  peace.  The  most 
important  of  these  is  the  Soviet  Union. 

Soviet  Attitude  Toward  Restoring  Peace 

Since  the  Soviet  representative  had  refused  to 
participate  in  the  meetings  of  the  Security  Coun- 
cil, which  took  action  regarding  Korea,  the  United 
States  brought  the  matter  directly  to  the  attention 
of  the  Soviet  Government  in  Moscow.  On  June 
27,  we  requested  the  Soviet  Government,  in  view 
of  its  known  close  relations  with  the  north  Korean 
regime,  to  use  its  influence  to  have  the  invaders 
withdraw  at  once.^ 

The  Soviet  Government,  in  its  reply  on  June  29  ^ 
and  in  subsequent  statements,  has  taken  the  posi- 
tion that  the  attack  launched  by  the  north  Korean 
forces  was  provoked  by  the  Republic  of  Korea  and 
that  the  actions  of  the  United  Nations  Security 
Council  were  illegal. 

These  Soviet  claims  are  flatly  disproved  by  the 

The  attitude  of  the  Soviet  Government,  toward 
the  aggression  against  the  Republic  of  Korea,  is 
in  direct  contradiction  to  its  often  expressed  in- 
tention to  work  with  other  nations  to  achieve 
peace  in  the  world. 

For  our  part,  we  shall  continue  to  support  the 
United  Nations  action  to  restore  peace  in  the 
Korean  area. 

U.S.  Support  of  U.N.  Resolutions 

As  the  situation  has  developed,  I  have  author- 
ized a  number  of  measures  to  be  taken.  Within 
the  firet  week  of  the  fighting.  General  MacArthur 
reported,  after  a  visit  to  the  front,  that  the  forces 
from  north  Korea  were  continuing  to  drive  south, 
and  further  support  to  the  Republic  of  Korea  was 
needed.  Accordingly;,  General  MacArthur  was 
authorized  to  use  United  States  Army  troops  in 
Korea  and  to  use  United  States  aircraft  of  the 
Air  Force  and  the  Navy  to  conduct  missions 
against  specific  military  targets  in  Korea  north  of 
the  38th  parallel,  where  necessary,  to  carry  out 
the  United  Nations  resolution.  General  Mac- 
Arthur  was  also  directed  to  blockade  the  Korean 

The  attacking  forces  from  the  north  have  con- 
tinued to  move  forward,  although  their  advance 
has  been  slowed  down.  The  troops  of  the  Re- 
public of  Korea,  though  initially  overwhelmed 
by  the  tanks  and  artilleiy  of  the  surprise  attack 
by  the  invaders,  have  been  reorganized  and  are 
fighting  bravely. 

United  States  forces,  as  they  have  arrived  in 
the  area,  have  fought  with  gi'eat  valor.  The  Army 
troops  have  been  conducting  a  very  difficult  delay- 
ing operation  with  skill  and  determination,  out- 

*  Bulletin  of  July  10,  1950,  p.  47. 
'  Bulletin  of  July  10,  1950,  p.  48. 

July  31,    J  950 

numbered  many  times  over  by  attacking  troops, 
spearheaded  by  tanks.  Despite  the  bad  weather 
of  the  rainy  season,  our  troops  have  been  valiantly 
supported  by  the  air  and  naval  forces  of  both  the 
United  States  and  other  members  of  the  United 

Nature  of  Military  Action  in  Korea 

In  this  connection,  I  think  it  is  important  that 
the  nature  of  our  military  action  in  Korea  be  un- 
derstood. It  should  be  made  perfectly  clear  that 
the  action  was  undertaken  as  a  matter  of  basic 
moral  principle.  The  United  States  was  going  to 
the  aid  of  a  nation  established  and  supported  by 
the  United  Nations  and  unjustifiably  attacked  by 
an  aggressor  force.  Consequently,  we  were  not 
deterred  by  the  relative  immediate  superiority  of 
the  attacking  forces,  by  the  fact  that  our  base  of 
supplies  was  5,000  miles  away,  or  by  the  further 
fact  that  we  would  have  to  supply  our  forces 
through  port  facilities  that  are  far  from  satis- 

We  are  moving  as  rapidly  as  possible  to  bring  to 
bear  on  the  fighting  front  larger  forces  and  heavier 
equipment  and  to  increase  our  naval  and  air  su- 
periority. But  it  will  take  time,  men,  and  material 
to  slow  down  the  forces  of  aggression,  bring  those 
forces  to  a  halt,  and  throw  them  back. 

Nevertheless,  our  assistance  to  the  Republic  of 
Korea  has  prevented  the  invaders  from  crushing 
that  nation  in  a  few  days — as  they  had  evidently 
expected  to  do.  We  are  determined  to  support  the 
United  Nations  in  its  effort  to  restore  peace  and 
security  to  Korea,  and  its  effort  to  assure  the  peo- 
ple of  Korea  an  opportunity  to  choose  their  own 
form  of  government  free  from  coercion,  as  ex- 
pressed in  the  General  Assembly  resolutions  of 
November  14, 1947,  and  December  12,  1948. 

Implications  for  World  Peace 

In  addition  to  the  direct  military  effort  we  and 
other  members  of  the  United  Nations  are  making 
in  Korea,  the  outbreak  of  aggression  there  re- 
quires us  to  consider  its  implications  for  peace 
throughout  the  world.  The  attack  upon  the  Re- 
public of  Korea  makes  it  plain  beyond  all  doubt 
that  the  international  Communist  movement  is 
prepared  to  use  armed  invasion  to  conquer  inde- 
pendent nations.  We  must,  therefore,  recognize 
the  possibility  that  armed  aggression  may  take 
place  in  other  areas. 

In  view  of  this,  I  have  already  directed  that 
United  States  forces  in  support  of  the  Philippines 
be  strengthened  and  that  militaiy  assistance  be 
speeded  up  to  the  Philippine  Government  and  to 
the  Associated  States  of  Indochina  aJid  to  the 
forces  of  France  in  Indochina.  I  have  also  or- 
dered the  United  States  Seventh  Fleet  to  prevent 
any  attack  upon  Formosa,  and  I  have  requested  the 
Chinese  Government  on  Formosa  to  cease  all  air 
and  sea  operations  against  the  mainland.     These 


steps  were  at  once  reported  to  the  United  Nations 
Security  Council.'^ 

Our  action  in  regard  to  Formosa  was  a  matter  of 
elementary  security.  The  peace  and  stability  of 
the  Pacific  area  had  been  violently  disturbed  by 
the  attack  on  Korea.  Attacks  elsewhere  in  the 
Pacific  area  would  have  enlarged  the  Korean 
crisis,  thereby  rendering  much  more  difficult  the 
carrying  out  of  our  obligations  to  the  United 
Nations  in  Korea. 

In  order  that  there  may  be  no  doubt  in  any 
quarter  about  our  intentions  regarding  Formosa, 
I  wish  to  state  that  the  United  States  has  no  ter- 
ritorial ambitions  whatever  concerning  that  island, 
nor  do  we  seek  for  ourselves  any  special  position 
or  privilege  on  Formosa.  The  present  military 
neutralization  of  Formosa  is  without  prejudice  to 
political  questions  affecting  that  island.  Our  de- 
sire is  that  Formosa  not  become  embroiled  in 
hostilities  disturbing  to  the  peace  of  the  Pacific 
and  that  all  questions  affecting  Formosa  be  set- 
tled by  peaceful  means  as  envisaged  in  the  Charter 
of  the  United  Nations.  With  peace  reestablished, 
even  the  most  complex  political  questions  are  sus- 
ceptible of  solution.  In  the  presence  of  brutal 
and  unprovoked  aggression,  however,  some  of 
these  questions  may  have  to  be  held  in  abeyance 
in  the  interest  of  the  essential  security  of  all. 

The  outbreak  of  aggression  in  the  Far  East  does 
not,  of  course,  lessen,  but  instead  increases,  the 
importance  of  the  common  strength  of  the  free 
nations  in  other  parts  of  the  world.  The  attack 
on  the  Republic  of  Korea  gives  added  urgency  to 
the  efforts  of  the  free  nations  to  increase  and  to 
unify  their  common  strength,  in  order  to  deter  a 
potential  aggressor. 

To  be  able  to  accomplish  this  objective,  the  free 
nations  must  maintain  a  sufficient  defensive  mili- 
tary strength  in  being  and,  even  more  important, 
a  solid  basis  of  economic  strength,  capable  of 
rapid  mobilization  in  the  event  of  emergency. 

Growing  Strength  of  Free  World 

The  strong  cooperative  efforts  that  have  been 
made  by  the  United  States  and  other  free  nations, 
since  the  end  of  World  War  II,  to  restore  eco- 
nomic vitality  to  Europe  and  other  parts  of  the 
world  and  the  cooperative  efforts  we  have  begun 
in  order  to  increase  the  productive  capacity  of  un- 
derdeveloped areas  are  exti-emely  important  con- 
tributions to  the  growing  economic  strength  of  all 
the  free  nations  and  will  be  of  even  greater  im- 
portance in  the  future. 

We  have  been  increasing  our  common  defensive 
strength  under  the  treaty  of  Eio  de  Janeii-o  and 
the  North  Atlantic  Treaty,  which  are  collective 
security  arrangements  within  the  framework  of 
the  United  Nations  Charter.  We  have  also  taken 
action  to  bolster  the  military  defenses  of  indi- 

"  Bulletin  of  July  3, 1950,  p.  7. 

vidual  free  nations,  such  as  Greece,  Turkey,  and 

The  defenses  of  the  North  Atlantic  Treaty  area 
were  considered  a  matter  of  great  urgency  by  the 
North  Atlantic  Council  in  London  this  spring. 
Recent  events  make  it  even  more  urgent  than  it 
was  at  that  time  to  build  and  maintain  these 

Under  all  the  circumstances,  it  is  apparent  that 
the  United  States  is  required  to  increase  its  mili- 
tary strength  and  preparedness  not  only  to  deal 
with  the  aggression  in  Korea  but  also  to  increase 
our  common  defense,  with  other  free  nations, 
against  further  aggression. 

increased  Strength  Needed  by  U.S. 

The  increased  strength  which  is  needed  falls 
into  three  categories. 

In  the  first  place,  to  meet  the  situation  in  Korea, 
we  shall  need  to  send  additional  men,  equipment, 
and  supplies  to  General  MacArthur's  command 
as  rapidly  as  possible. 

In  the  second  place,  the  world  situation  requires 
that  we  increase  substantially  the  size  and  materiel 
support  of  our  armed  forces,  over  and  above  the 
increases  which  are  needed  in  Korea. 

In  the  third  place,  we  must  assist  the  free  na- 
tions associated  with  us  in  common  defense  to 
augment  their  military  strength. 

Of  the  three  categories  I  have  just  enumerated, 
the  first  two  involve  increases  in  our  own  military 
manpower,  and  in  the  materiel  support  that  our 
men  must  have. 


To  meet  the  increased  requirements  for  military 
manpower,  I  have  authorized  the  Secretary  of  De- 
fense to  exceed  the  budgeted  strength  of  military 
personnel  for  the  Army,  Navy,  and  Air  Force  and 
to  use  the  Selective  Service  system  to  such  extent 
as  may  be  required  in  order  to  obtain  the  increased 
strength  which  we  must  have.  I  have  also  author- 
ized the  Secretary  of  Defense  to  meet  the  need  for 
military  manpower  by  calling  into  active  Federal 
service  as  many  National  Guard  units  and  as  many 
units  and  individuals  of  the  Reserve  forces  of  the 
Army,  Navy,  and  Air  Forces  as  may  be  required. 

I  have  directed  the  Secretary  of  Defense  and  the 
Joint  Chiefs  of  Staff  to  keep  our  military  man- 
power needs  under  constant  study,  in  order  that 
further  increases  may  be  made  as  required.  There 
are  now  statutory  limits  on  the  sizes  of  the  armed 
forces,  and,  since  we  may  need  to  exceed  these  lim- 
its, I  recommend  that  they  be  removed. 


To  increase  the  level  of  our  military  strength 
will  also  require  additional  supplies  and  equip- 
ment. Procurement  of  many  items  has  already 
been  accelerated,  in  some  cases  for  use  in  Korea,  in 

Department  of  Stale  Bulletin 

others  to  replace  reserve  stocks  which  are  now  be- 
ing sent  to  Korea,  and  in  still  others  to  add  to  our 
general  level  of  preparedness.  Further  increases 
in  procurement,  resulting  in  a  higher  rate  of  pro- 
duction of  military  equipment  and  supplies,  will 
be  necessary. 


The  increases  in  the  size  of  the  armed  forces,  and 
the  additional  supplies  and  equipment  which  will 
be  needed,  will  require  additional  appropriations. 
Within  the  next  few  days,  I  will  transmit  to  the 
Congress  specific  requests  for  appropriations  in  the 
amount  of  approximately  10  billion  dollars. 

Tliese  requests  for  appropriations  will  be  ad- 
dressed to  the  needs  of  our  own  military  forces. 
Earlier,  I  referred  to  the  fact  that  we  must  also 
assist  other  free  nations  in  the  strengthening  of 
our  common  defenses.  The  action  we  must  take 
to  accomplish  this  is  just  as  important  as  the 
measures  required  to  strengthen  our  own  forces. 

The  authorization  bill  for  the  Mutual  Defense 
Assistance  Program  for  1951,  now  before  the 
House  of  Representatives,  is  an  important  imme- 
diate step  toward  the  strengthening  of  our  collec- 
tive security.  It  should  be  enacted  without  de- 

Strengthening  Other  Free  Nations 

But  it  is  now  clear  that  the  free  nations  of  the 
world  must  step  up  their  common  security  pro- 
gram. The  other  nations  associated  with  us  in 
the  Mutual  Defense  Assistance  Program,  like  our- 
selves, will  need  to  divert  additional  economic  re- 
sources to  defense  purposes.  In  order  to  enable 
the  nations  associated  with  us  to  make  their  maxi- 
mum contribution  to  our  common  defense,  further 
assistance  on  our  part  will  be  required.  Addi- 
tional assistance  may  also  be  needed  to  increase 
the  strength  of  certain  other  free  nations  whose 
security  is  vital  to  our  own. 

In  the  case  of  the  North  Atlantic  area,  these  re- 
quirements will  reflect  the  consultations  now  going 
on  with  the  other  nations  associated  with  us  in  the 
North  Atlantic  Treaty.  As  soon  as  it  is  possible 
to  determine  what  each  nation  will  need  to  do,  I 
shall  lay  before  the  Congress  a  request  for  such 
funds  as  are  shown  to  be  necessary  to  the  attain- 
ment and  maintenance  of  our  common  strength  at 
an  adequate  level. 

The  steps  which  we  must  take  to  support  the 
United  Nations  action  in  Korea,  and  to  increase 
our  own  strength  and  the  common  defense  of  the 
free  world,  will  necessarily  have  repercussions 
upon  our  domestic  economy. 

Many  of  our  young  men  are  in  battle  now,  or 
soon  will  be.  Others  must  be  trained.  The  equip- 
ment and  supplies  they  need,  and  those  required 
for  adequate  emergency  reserves,  must  be  pro- 
duced.   They  must  be  made  available  promptly, 

July  31,   1950 

at  reasonable  cost,  and  without  disrupting  the 
efficient  functioning  of  the  economy. 

Protecting  Economic  Growth 

We  must  continue  to  recognize  that  our  strength 
is  not  to  be  measured  in  military  terms  alone.  Our 
power  to  join  in  a  common  defense  of  peace  rests 
fundamentally  on  the  productive  capacity  and 
energies  of  our  people.  In  all  that  we  do,  there- 
fore, we  must  make  sure  that  the  economic 
strength  which  is  at  the  base  of  our  security  is 
not  impaired,  but  continues  to  grow. 

Our  economy  has  tremendous  productive  power. 
Our  total  output  of  goods  and  services  is  now 
running  at  an  annual  i-ate  of  nearly  270  billion 
dollars — over  100  billion  dollars  higher  than  in 
1939.  The  rate  is  now  about  13  billion  dollars 
higher  than  a  year  ago  and  about  8  billion  dollars 
higher  than  the  previous  record  date  reached  in 
19-18.  All  the  foregoing  figures  have  been  adjusted 
for  price  changes  and  are,  therefore,  a  measure  of 
actual  output.  The  index  of  industrial  production, 
now  at  197,  is  12  percent  higher  than  the  average 
for  last  year  and  81  percent  higher  than  in  1939. 

We  now  have  611/2  million  people  in  civilian  em- 
ployment. There  are  16  million  more  people  in 
productive  jobs  than  there  were  in  1939.  We  are 
now  producing  11  million  more  tons  of  steel  a  year 
than  in  the  peak  war  year  1944.  Electric  power 
output  has  risen  from  128  billion  kilowatt  hours 
in  1939,  to  228  billion  hours  in  1944,  to  317  billion 
hours  now.  Food  production  is  about  a  third 
higher  than  it  ever  was  before  the  war  and  is  prac- 
tically as  high  as  it  was  during  the  war  years,  when 
we  were  sending  far  more  food  abroad  than  we 
are  now. 

The  potential  productive  power  of  our  economy 
is  even  greater.  We  can  achieve  some  immediate 
increase  in  production  by  employing  men  and  fa- 
cilities not  now  fully  utilized.  And  we  can  con- 
tinue to  increase  our  total  annual  output  each  year, 
by  putting  to  use  the  increasing  skills  of  our  grow- 
ing population  and  the  higher  productive  capacity 
which  results  from  plant  expansion,  new  inven- 
tions, and  more  efficient  methods  of  production. 

With  this  enormous  economic  strength,  the  new 
and  necessary  programs  I  am  now  recommending 
can  be  undertaken  with  confidence  in  the  ability 
of  our  economy  to  bear  the  strains  involved.  Nev- 
ertheless, the  magnitude  of  the  demands  for  mili- 
tary purposes  that  are  now  foreseeable,  in  an 
economy  which  is  already  operating  at  a  very  high 
level,  will  require  substantial  redirection  of  eco- 
nomic resources. 


Under  the  program  for  increasing  military 
strength  which  I  have  outlined  above,  military 
and  related  procurement  will  need  to  be  expanded 
at  a  more  rapid  rate  than  total  production  can 


be  expanded.  Some  materials  were  in  short  supply 
even  before  the  Korean  situation  developed.  The 
steel  industry,  for  example,  was  operating  at  ca- 
pacity levels  and,  even  so,  was  not  able  to  satisfy 
all  market  demands.  Some  other  construction 
materials,  and  certain  other  products,  were  also 
under  pressure  and  their  prices  were  rising — even 
before  the  outbi'eak  in  Korea. 

The  substantial  speed-up  of  military  procure- 
ment will  intensify  these  shortages.  Action  must 
be  taken  to  insure  that  these  shortages  do  not  inter- 
fere with  or  delay  the  materials  and  the  supplies 
needed  for  the  national  defense. 


Further,  the  dollars  spent  now  for  military  pur- 
poses will  have  a  magnified  effect  upon  the  econ- 
omy as  a  whole,  since  they  will  be  added  to  the  high 
level  of  current  civilian  demand.  These  increased 
pressures,  if  neglected,  could  drive  us  into  a  gen- 
eral inflationary  situation.  The  best  evidence  of 
this  is  the  recent  price  advances  in  many  raw 
materials  and  in  the  cost  of  living,  even  upon  the 
mere  expectancy  of  increased  military  outlays. 

In  these  circumstances,  we  must  take  action  to 
insure  that  the  increased  national  defense  needs 
will  be  met  and  that  in  the  process  we  do  not  bring 
on  an  inflation,  with  its  resulting  hardship  for 
every  family. 

At  the  same  time,  we  must  recognize  that  it  will 
be  necessary  for  a  number  of  years  to  support 
continuing  defense  expenditures,  including  assist- 
ance to  other  nations,  at  a  higher  level  than  we 
had  previously  planned.  Therefore,  the  economic 
measures  we  take  now  must  be  planned  and  used 
in  such  a  manner  as  to  develop  and  maintain  our 
economic  strength  for  the  long  run  as  well  as  the 
short  run. 


I  am  recommending  certain  legislative  measures 
to  help  achieve  these  objectives.  I  believe  that 
each  of  them  should  be  promptly  enacted.  We 
must  be  sure  to  take  the  steps  that  are  necessai-y 
now,  or  we  shall  surely  be  required  to  take  much 
more  drastic  steps  later  on. 

First,  we  should  adopt  such  direct  measures  as 
are  now  necessary  to  assure  prompt  and  adeqiuite 
supplies  of  goods  for  military  and  essential  civil- 
ian use.  I,  therefore,  recommend  that  the  Con- 
gress now  enact  legislation  authorizing  the 
Government  to  establish  priorities  and  allocate 
materials  as  necessary  to  promote  the  national 
security;  to  limit  the  use  of  materials  for  nones- 
sential purposes;  to  prevent  inventory  hoarding; 
and  to  requisition  supplies  and  materials  needed 
for  the  national  defense,  particularly  excessive  and 
unnecessary  inventories. 

Second,  we  must  pi'omptly  adopt  some  general 
measures  to  compensate  for  the  growth  of  demand 
caused  by  the  expansion  of  military  programs  in  a 

period  of  high  civilian  incomes.  I  am  directing  all 
executive  agencies  to  conduct  a  detailed  review  of 
Government  progi-ams,  for  the  purpose  of  modify- 
ing them  wherever  practicable  to  lessen  the  de- 
mand upon  services,  commodities,  raw  materials, 
manpower,  and  facilities  which  are  in  competition 
with  those  needed  for  national  defense.  The  Gov- 
ernment, as  well  as  the  public,  must  exercise  great 
restraint  in  the  use  of  those  goods  and  services 
which  are  needed  for  our  increased  defense  efforts. 

Increase  in  Revenues 

Nevertheless,  the  increased  appropriations  for 
the  Department  of  Defense,  plus  the  defense-re- 
lated appropriations  which  I  have  recently  sub- 
mitted for  power  development  and  atomic  energy, 
and  others  which  will  be  necessary  for  such  pur- 
poses as  stockpiling,  will  mean  sharply  increased 
Federal  expenditures.  For  this  reason,  we  should 
increase  Federal  revenues  more  sharply  than  I 
have  previously  recommended,  in  order  to  reduce 
the  inflationary  effect  of  the  Government  deficit. 

There  are  two  fundamental  principles  which 
must  guide  us  in  framing  measures  to  obtain  these 
additional  revenues : 

(A)  We  must  make  every  effort  to  finance  the 
greatest  possible  amount  of  needed  expenditures 
by  taxation.  The  increase  of  taxes  is  our  basic 
weaj^on  in  offsetting  the  inflationary  pressures  ex- 
erted by  enlarged  government  expenditures. 
Heavier  taxes  will  make  general  controls  less 

(B)  We  must  provide  for  a  balanced  system  of 
taxation  which  makes  a  fair  distribution  of  the 
tax  burden  among  the  different  groups  of  indi- 
viduals and  business  concerns  in  the  Nation. 
A  balanced  tax  program  should  also  have  as  a 
major  aim  the  elimination  of  profiteering. 

At  an  appropriate  time,  as  soon  as  the  neces- 
sary studies  are  completed,  I  shall  present  to  the 
Congress  a  program  based  on  these  principles  to 
assui'e  the  financing  of  our  needs  in  a  manner 
which  will  be  fair  to  all  our  citizens,  which  will 
help  prevent  inflation,  and  which  will  maintain 
the  fiscal  position  of  the  Nation  in  the  soundest 
possible  condition. 

Control  of  Credit 

As  a  further  important  safeguard  against  in- 
flation, we  shall  need  to  restrain  credit  expansion. 
I  recommend  that  the  Congress  now  authorize  the 
control  of  consumer  credit  and  credit  used  for 
commodity  speculation.  In  the  housing  field, 
where  Government  credit  is  an  important  factor, 
I  have  directed  that  certain  available  credit  re- 
straints be  applied,  and  I  recommend  that  further 
controls  be  authorized,  particularly  to  restrain 
expansion  of  privately  financed  real  estate  credit. 
These  actions  will  not  only  reduce  the  upward 
])ressure  on  prices  but  will  also  reduce  the  demand 
for  certain  critical  materials  which  are  required 
for  the  production  of  military  equipment. 


Department  of  State  Bulletin 

Third,  we  must  take  steps  to  accelerate  and  in- 
crease the  production  of  essential  materials,  prod- 
ucts, and  services.  I  recommend,  therefore,  that 
the  Congress  authorize,  for  national  defense  pur- 
poses, production  loan  fj;uaranties  and  loans  to 
increase  production.  I  also  recommend  that  the 
Congress  authorize  the  making  of  long-term  con- 
tracts and  other  means  to  encourage  the  produc- 
tion of  certain  materials  in  short  supply. 

In  the  forthcoming  midyear  economic  report, 
I  shall  discuss  in  greater  detail  the  current  eco- 
nomic situation  and  the  economic  measures  which 
I  have  recommended.  If  these  measures  are  made 
available  promptly,  and  firndy  administered,  I 
believe  we  will  be  able  to  meet  military  needs 
without  serious  disruption  of  the  economy. 

If  we  are  to  be  successful,  there  must  be  sensible 
and  restrained  action  by  businessmen,  labor,  farm- 
ers, and  consumers.  The  people  of  this  country 
know  the  seriousness  of  inflation  and  will,  I  am 
sure,  do  everything  they  can  to  see  that  it  does  not 
come  upon  us.  However,  if  a  sharp  rise  in  prices 
should  make  it  necessary,  I  shall  not  hesitate  to 
recommend  the  more  drastic  measures  of  price 
control  and  rationing. 

Need  for  Building  Strength 

The  hard  facts  of  the  present  situation  require 
relentless  determination  and  firm  action.  The 
course  of  the  fighting  thus  far  in  Korea  shows  that 
we  can  expect  no  easy  solution  to  the  conflict  there. 
We  are  confronted  in  Korea  with  well-supplied, 
well-led  forces  which  have  been  long  trained  for 
aggressive  action.  We  and  the  other  members  of 
the  United  Nations  who  have  joined  in  the  effort 
to  restore  peace  in  Korea  must  expect  a  hard  and 
costly  militai'y  operation. 

We  must  also  prepare  ourselves  better  to  fulfill 
our  responsibilities  toward  the  preservation  of  in- 
ternational peace  and  security  against  possible 
further  aggi'ession.  In  this  effort,  we  will  not 
flinch  in  the  face  of  danger  or  difficulty. 

The  free  world  has  made  it  clear,  through  the 
United  Nations,  that  lawless  aggression  will  be 
met  with  force.  This  is  the  significance  of 
Korea — and  it  is  a  significance  whose  importance 
cannot  be  overestimated. 

I  shall  not  attempt  to  predict  the  course  of 
events.  But  I  am  sure  that  those  who  have  it  in 
their  power  to  unleash  or  withhold  acts  of  armed 
aggi-ession  must  realize  that  new  recourse  to  ag- 
gression in  the  woidd  today  might  well  strain  to 
the  breaking  point  the  fabric  of  world  peace. 

The  United  States  can  be  proud  of  the  part  it 
has  played  in  the  United  Nations  action  in  this 
crisis.    We  can  be  proud  of  the  unhesitating  sup- 

port of  the  American  people  for  the  resolute  ac- 
tions taken  to  halt  the  aggression  in  Korea  and 
to  sujjport  the  cause  of  world  peace. 

The  Congress  of  the  United  States,  by  its  strong, 
bipartisan  support  of  the  steps  we  are  taking  and 
by  repeated  actions  in  support  of  international 
cooperation,  has  contributed  most  vitally  to  the 
cause  of  peace.  The  expressions  of  support  which 
have  been  forthcoming  from  the  leaclers  of  both 
political  parties  for  the  actions  of  our  Govern- 
ment and  of  the  United  Nations  in  dealing  with 
the  present  crisis  have  buttressed  the  firm  morale 
of  the  entire  free  world  in  the  face  of  this 

The  American  people,  together  with  other  free 
peoples,  seek  a  new  era  in  world  affairs.  We  seek 
a  world  where  all  men  may  live  in  peace  and  free- 
dom, with  steadily  improving  living  conditions, 
inider  governments  of  their  own  free  choice. 

For  ourselves,  we  seek  no  territory  or  domina- 
tion over  others.  We  are  determined  to  maintain 
our  democratic  institutions  so  that  Americans 
now  and  in  the  future  can  enjoy  personal  liberty, 
economic  opportunity,  and  political  equality.  We 
are  concerned  with  advancing  our  prosperity  and 
our  well-being  as  a  nation,  but  we  know  that  our 
future  is  inseparably  joined  with  the  future  of 
other  free  peoples. 

We  will  follow  the  course  we  have  chosen  with 
courage  and  with  faith,  because  we  carry  in  our 
hearts  the  flame  of  freedom.  We  are  fighting  for 
liberty  and  for  peace — and  with  God's  blessing  we 
shall  succeed. 

U.S.  and  Belgium  Consult 
on  Korean  Assistance 

[Released  to  the  press  July  22] 

The  Belgian  Government  is  exchanging  views 
with  the  United  States  Government  regarding 
assistance  in  the  Korean  conflict.  These  discus- 
sions were  instituted  as  a  result  of  Belgium's  de- 
cision which  was  communicated  to  the  Secretary- 
General  of  the  United  Nations.  The  two  Govern- 
ments are,  at  jDresent,  in  consultation  with  a  view 
to  ascertaining  what  types  of  aid  Belgium  can  best 
furnish  consistent  with  its  international  obliga- 
tions. It  is  planned,  as  a  first  step,  that  the 
Belgian  Government  will  lend  assistance  in  air 
transport  operations  to  and  from  the  Korean 
theatre.  A  communication  to  this  effect  has  been 
made  this  morning  to  the  Secretary-General  of 
the  United  Nations. 

July  31,    1950 


Prime  Minister  Neliru's  Appeal  To  Settle  Korean  Problem 
by  Admitting  Chinese  Communists  to  U.N.  Rejected 

[Released  to  the  press  July  19] 

On  July  IS,  Prime  Minister  Nehru,  through  the  Indian 
Ambassador  at  Washington,  transmitted  to  Secretary 
Acheson  a  message  concerning  the  Korean  situation.  On 
July  18,  the  Secretary  replied,  through  the  American 
Ambassador  at  New  Delhi.  On  July  19,  the  Indian  Prime 
Minister  transmitted,  through  the  Indian  Ambassador  at 
Washington,  a  reply  to  the  Secretary's  message.  Texts  of 
the  messages  follow. 

JULY  13 

In  interviews  which  your  Ambassador  has  had 
with  officials  of  the  Ministry  of  External  Affairs, 
we  have  explained  India's  position  in  the  Korean 

India's  purpose  is  to  localize  the  conflict  and  to 
facilitate  an  early  peaceful  settlement  by  break- 
ing the  present  deadlock  in  the  Security  Council  so 
that  representatives  of  the  People's  Government  of 
China  can  take  a  seat  in  the  Council,  the  Union 
of  Soviet  Socialist  Eepublics  can  return  to  it,  and, 
whether  within  or  through  informal  contacts  out- 
side the  Council,  the  United  States  of  America,  the 
Union  of  Soviet  Socialist  Eepublics,  and  China, 
with  the  help  and  cooperation  of  other  peace- 
loving  nations,  can  find  a  basis  for  terminating 
the  conflict  and  for  a  permanent  solution  of  the 
Korean  problem. 

In  full  confidence  of  Your  Excellency's  deter- 
mination to  maintain  peace  and  thus  to  preserve 
the  solidarity  of  the  United  Nations,  I  venture  to 
address  this  personal  appeal  to  you  to  exert  your 
great  authority  and  influence  for  the  achievement 
of  this  common  purpose  on  which  the  well-being 
of  mankind  depends. 


I  am  deeply  appreciative  of  the  high  purpose 
which  prompted  Your  Excellency  in  sending  the 
message  which  I  received  on  July  13, 1950,  through 
your  distinguished  Ambassador  in  Washington 


and  your  subsequent  message  of  the  I7th  trans- 
mitting Prime  Minister  Stalin's  reply  to  your 
similar  letter  to  him  of  July  13.  Both  the  Presi- 
dent and  I  have  given  the  most  thoughtful  consid- 
eration to  these  communications. 

One  of  the  most  fundamental  objectives  of  the 
foreign  policy  of  the  United  States  is  to  assist  in 
maintaining  world  peace,  and  the  Government  of 
the  United  States  is  firmly  of  the  opinion  that  the 
United  Nations  is  the  most  effective  instrument  yet 
devised  for  maintaining  and  restoring  interna- 
tional peace  and  security.  The  United  States  is, 
therefore,  eager  to  do  all  that  is  proper  and  pos- 
sible to  preserve  and  strengthen  the  United 

The  purpose  of  the  United  States  Government 
and  of  the  American  people  with  respect  to  Korea 
is  to  support  by  all  means  at  our  disposal  the  deter- 
mination of  the  United  Nations  to  repel  the  armed 
attack  upon  Korea  and  to  restore  international 
peace  and  security  in  the  area.  We  desire  both  to 
prevent  the  spread  of  aggression  beyond  Korea 
and  to  end  it  there — as  required  by  the  Security 
Council  of  the  United  Nations. 

We  are  deeply  conscious  of  the  fact  that  law- 
abiding  governments  and  peoples  throughout  the 
world  have  a  vital  stake  in  the  issues  involved  in 
this  aggression  and  in  the  success  of  the  United 
Nations  in  dealing  with  it.  It  is  painful  to  real- 
ize that  there  could  have  long  since  been  a  restora- 
tion of  peace  and  the  saving  of  the  lives  of  those 
fighting  on  behalf  of  the  United  States  had  not 
a  small  minority  of  the  United  Nations  failed  to 
meet  their  obligations  under  tlie  Charter  and  re- 
fused to  use  their  authority  and  influence  to  pre- 
vent or  stop  tJie  hostilities.  The  acceptance  of 
their  obligations  and  the  exercise  of  their  author- 
ity and  influence  in  accordance  with  those  obliga- 
tions would  restore  peace  tomorrow. 

A  breach  of  the  peace  or  an  act  of  aggression 
is  the  most  serious  matter  with  which  the  United 
Nations  can  be  confronted.  We  do  not  believe 
that  the  termination  of  the  aggression  from  noi'th- 
ern  Korea  can  be  contingent  in  any  way  upon  the 

Department  of  State  Bulletin 

determination  of  other  questions  which  are  cur- 
rently before  the  United  Nations. 

There  has  not  been  at  any  time  any  obstacle  to 
the  full  participation  by  the  Soviet  Union  in  the 
■work  of  the  United  Nations  except  the  decision  of 
the  Soviet  Government  itself.  The  Security 
Coinicil  has  shown  that  it  is  both  competent  and 
willing  to  act  vigorously  for  the  maintenance  of 

In  our  opinion,  the  decision  between  competing 
claimant  governments  for  China's  seat  in  the 
United  Nations  is  one  which  must  be  reached  by 
the  United  Nations  on  its  merits.  It  is  a  question 
on  which  there  is  at  present  a  wide  diversity  of 
views  among  the  membership  of  the  United  Na- 
tions. I  know  you  will  agree  that  the  decision 
should  not  be  dictated  by  an  unlawful  aggression 
or  by  any  other  conduct  which  would  subject  the 
United  Nations  to  coercion  and  duress. 

I  know  that  Your  Excellency  shares  our  earnest 
desire  to  see  an  early  restoration  of  peace  in  Korea 
in  accordance  with  the  resolutions  of  the  Security 
Council,  and  I  assure  you  of  our  eagerness  to  work 
with  you  and  your  great  country  to  establish  in 
the^United  Nations  a  means  by  which  the  fear  of 
aggression  can  be  permanently  lifted  from  the 
peoples  of  the  earth. 

JULY  19 

I  thank  you  for  your  letter  which  your  Ambas- 
sador convej'ed  to  me  last  night. 

I  am  grateful  to  President  Truman  and  to  you 
for  the  consideration  that  you  have  given  to  my 
message  of  the  13th  July  and  to  the  subsequent 
communication  forwarding  Marshal  Stalin's  reply 
to  my  message  to  him  of  the  same  date. 

I  recognize  that  one  of  the  most  fundamental 
objectives  of  the  foreign  policy  of  the  United 
States  is  to  assist  in  maintaining  world  peace,  and 
that  the  Government  of  the  United  States  is  firmly 
of  the  opinion  that  the  United  Nations  is  one  of 
the  most  effective  instruments  yet  devised  for 
maintaining  and  restoring  international  peace  and 
security.  As  Your  Excellency  must  be  aware,  the 
maintenance  of  peace  and  support  of  the  United 
Nations  has  consistently  been  the  policy  of  the 
Government  of  India. 

My  suggestion  for  breaking  the  present  dead- 
lock in  the  Security  Council,  so  that  representa- 
tives of  the  People's  Government  of  China  can 
take  their  seat  in  the  Council  and  the  Union  of 
Soviet  Socialist  Republics  can  return  to  it,  was 
designed  to  fulfill  this  policy,  not  to  weaken  it.  In 
voting  for  the  resolutions  on  Korea  adopted  by  the 
Security  Council,  on  the  25th  and  27th  June,  it  was 
our  purpose  to  strengthen  the  United  Nations  in 
resisting  aggression. 

Since  the  Government  of  India  recognized  the 
People's  Government  of  China  on  30th  December 
1949,  it  has  been  our  endeavour  to  bring  about  the 

July  31,    1950 

admission  of  its  representatives  to  the  various 
organs  and  agencies  of  the  United  Nations.  Our 
present  proposal  was  a  renewal  of  this  effort.  It 
was  made  on  its  merits  and  also  in  the  hope  that 
it  would  create  a  suitable  atmosphere  for  the  peace- 
ful solution  of  the  Korean  problem.  I  do  not  think 
that  the  admission  of  China  now  would  be  an 
encouragement  of  aggression. 

I  am  requesting  our  Ambassador  in  Moscow  to 
communicate  the  text  of  Your  Excellency's  letter 
to  me,  and  of  my  reply,  to  Marshal  Stalin.  Ar- 
rangements are  also  being  made  to  release  at  3  a.  m. 
tomorrow  (20  July,  Indian  standard  time),  copies 
of  these  two  letters,  of  my  messages  to  Your  Excel- 
lency and  to  Marshal  Stalin  dated  13th  July,  and 
of  the  messages  exchanged  between  Marshal 
Stalin  and  me  on  the  15th  and  16th  July,  respec- 

Korea  in  Perspective 

Extemporaneous  Remarks  hy  Secretary  Acheson  ^ 

Tomorrow  evening,  it  will  be  exactly  4  weeks 
since  the  attack  took  place  in  Korea.  I  thought 
it  might  be  useful  if  we  stopped  for  a  moment  and 
surveyed  bi'oadly  what  has  happened  in  the  4 
weeks  which  have  followed  that  attack.  I  think 
we  become  so  absorbed  in  the  daily  report  of  the 
fighting  in  Korea  that  it  might  be  useful  to  get 
some  perspective  in  the  larger  field. 

This  attack,  as  you  know,  was  a  very  carefully, 
well-planned  sneak  attack  which  was  supposed  to 
overwhelm  the  Republic  of  Korea  in  a  very  short 
time.  As  a  result  of  the  prompt,  vigorous,  and 
determined  action  of  the  free  world  that  has  not 

What  has  happened  in  the  month  is  that  there 
was  an  instantaneous  and  vigorous  response  from 
the  Security  Council  of  the  United  Nations.  Here, 
it  was  confronted  with  a  clear  case  of  aggression, 
and  it  met  that  issue  squarely  and  clearly.  That 
is  a  most  important  development. 

Following  that,  there  was  instantaneous  and 
strong  support  of  the  United  Nations  from  the 
United  States.  The  United  States  was  joined  in 
that  by  other  nations  which  promptly  made  forces 
available,  so  that  you  have  not  only  strong  action 
by  the  United  Nations,  strong  action  by  the  United 
States,  you  also  have  actual  participation  in  the 
resistance  to  aggression  by  other